- The pretext of the quarantine has highlighted globally regarding probable investment themes like that of Education, Entertainment, online sports as well as the pet’s world.
- Accordingly, as per the opine of a Manager, various governments can make the optimum utilization of varied momentum of fiscal measures that can lead to promotion of various initiatives which favours the environment.
- The exceptionality of these environmental change has bought in closeness with the families confined to their homes and thereby has brought in new habits as well as behavioural change representing the investment opportunities.
As per the team of the Allianz Thematica fund, managed by Andreas Fruschki and Gunnar Miller, who considers this pandemic time period to be a true opportunity for “stay at home and save the world” as the most potent option of slowing down the pandemic and have various investment ideas even during this otherwise a very declining growth and stagnant market crisis period.
This strange moment of confinement experienced by an outsized a part of the population, especially in Europe, has pushed for a change within the way of life and this “stay at home” has generated new habits. it’s true that, because the Allianz Thematica team highlights, the slowdown within the economy and consumption may be a clear risk, but it’s also promoted other topics associated with lifestyle reception.
“As social distancing becomes the strategy to undertake to contain the spread of the virus, activities administered from home are now in greater demand and are experiencing a tailwind. The theme encompasses variety of themes and issues that fit into the stay-at-home motto: education, sports within the digital life and therefore the pet economy.”
Within the topic of education, the manager considers that the good focus is technology and online learning, which lately is undergoing an excellent test. “The closure of university campuses throughout China, but also in Japan and Europe, necessitates continuity of online courses and content. Despite the initial logical problems, this experiment shows that distance education has arrived and is here to remain”, stand out from the firm.
Something similar occurs with the practice of online sports, the planet of gaming and digital entertainment. a transparent investment theme that, once more, has technology at the middle, particularly streaming platforms and people that support networks. Finally, and within the investment ideas that arise from this experience of “staying at home”, the Allianz Thematica team highlights the “economy of pets”.
In his opinion, this experience is creating a really deep bond between owners and their pets that would translate into greater consumption of products and services associated with the animal world.
“Our underlying hypothesis remains that the present crisis is temporary, although its duration and scope are largely unknown. the present boom within the “stay home” theme could lose some momentum once people’s domestic confinement is removed. However, the new habits that have emerged and became widespread during this crisis will provide long-term tailwinds and as these solutions become a part of people’s daily lives, they mean from this Allianz GI team.
Salvaging the world: –
Allianz GI team warns global investment managers further that “Thanks to the confinement, the second a part of this motto – ‘save the world’ – has led us to a transparent reflection: the crippling of the worldwide economy has improved environment and pollution rates thereby favouring the greener atmosphere and nature.”
Now that the global economy is slowing down, environmental pressures may temporarily decrease. However, it’s very clear that this is often only a short-term solution and not a permanent solution to water, land and air related problems. These problems will become more evident when the present crisis is reduced.
For managers, this warning can become a chance for the longer term. “The pressure on the environment will intensify when governments restart their economies. However, this doesn’t necessarily need to be a contradiction, since many of subsequent fiscal stimuli might be wont to remote solutions in favour of the earth.
They further explain that this is able to achieve a double effect: of stimulating the economy and protecting the environment. This could promise well for companies whose activities are associated with water, land and sustainable energy.
