A resurgence of coronavirus cases in the US is a reminder that this crisis is far from over. This means equity markets might experience more falls, so uncertainty for investors remains. But while this is likely to be the case for market indices overall, there are sectors and regions that may not be so badly affected.
Less economically sensitive companies
Good long-term returns
Highly experienced managers
These are likely to include companies that produce essential goods and services that tend to be purchased regardless of the economic situation. “Non-life insurance, for example, is not a discretionary purchase and often required by law, so demand tends to be less sensitive to macroeconomic conditions,” explains Sheridan Admans, manager of The Share Centre’s Multi Manager funds.