Coronavirus: The best place to invest now is in early stage biotech, says Ron Bauer
Ever since the first case of coronavirus in early 2020, the disease quickly had an imminent and widespread impact on the world as a whole. While it certainly is true that the negative effects on the personal health of hundreds of thousands of individuals are the forefront of coronavirus’ impact on the world, the effects do not end there: There has also been a substantial economic impact that has, in turn, drastically altered the conditions within the global stock markets and so many sectors including the global hospitality and travel industries.
For many investors, the question remains as how best to alter investment strategies during this time of uncertainty. Ron Bauer, an experienced venture capitalist, entrepreneur, investor, and business owner, provides an overview detailing the basics concerning coronavirus in addition to the current state of affairs within the stock markets, and lastly why biotech companies are one of the few bright spots left for investment.
What Is Coronavirus?
Before we go into details concerning investment strategies as a response to the coronavirus, it is important to have a factually-based understanding of the disease to ensure you have a firm grasp on its implications.
Coronavirus, also known as COVID-19, originated in Wuhan, the capital of the Hubei province in China. The first known case occurred on December 1st, 2019, and since then, over 500,000 individuals have contracted the disease. It is important to note that although there have been over 20,000 recorded deaths since then, there have been over 120,000 successful recoveries.
The symptoms for coronavirus are similar to those of a cold and include coughing, fever, and breathing difficulties. Should you find yourself experiencing these symptoms, it is important to notify your friends, family, and, most importantly, your nearest healthcare professional; after such time, you will also need to isolate yourself as much as possible in order to prevent coronavirus from spreading further.
Even if you do not observe any of the symptoms, it is just as important to have the proper due diligence concerning the prevention of the disease. Practice good hygiene by washing your hands frequently and thoroughly in addition to avoiding physical contact with others whenever possible and avoiding contact between your hands and your eyes, nose, or mouth.
Current State of Affairs in the Stock Markets
Not long after the outbreak of coronavirus occurred, the effects were felt strongly throughout the global stock markets which almost lost half their value within a month in the USA and collapsed across Europe and Asia. Conditions such as supply chain disruptions and overall feelings of panic were contributing factors to a significant worsening of the state of the global stock markets, with fear of another global recession or a depression being imminent as a result, says Ron Bauer. With all of this in mind, however, there are still certain avenues of investment that may just be the best option during these troubling times.
Ever since the first case of coronavirus, biotech companies have begun a fiercely-competitive and fast-paced race to discover the cure, says Ron Bauer. In just a number of months, the first batch was shipped out and it is only a matter of time until more follow suit. Although a cure has not yet been found, these shipments are able to provide a small degree of relief for both the individuals suffering from coronavirus as well as the panicked masses.
How Stocks Are Still Soaring
As a result of the recent actions taken by biotech companies to discover the cure to coronavirus, there have been consistent spikes in their stocks’ respective values. This is very much representative of the urgency surrounding the need for a cure or treatment and although conditions in the global stock markets still have an air of uncertainty to them due to the epidemic, there is a considerable amount of potential for further stock growth for biotech companies in general, says Ron Bauer.
Although stocks have already begun to rise, it is not too late to jump in and invest in biotech; many companies are optimistic that a cure will be discovered sooner rather than later and regardless of the exact amount of time that this process takes, biotech companies will see a consistent performance boost as they tirelessly work towards discovering and mass-producing the critical vaccine.
Final Thoughts from Ron Bauer
With all of the troubling conditions in the global stock markets that are occurring, from general feelings of panic to supply disruptions and even individuals pulling out of the market entirely in favor of government bonds, it is essential to stay calm and remember that biotech companies are a legitimate alternative investment strategy, says Ron Bauer.
While the travel, retail, and industrial markets may be taking a hit, the best chance the market has is the biotech market, or the healthcare market in general.