At a time of countless uncertainties regarding the future of the world economy, and in particular the North American economy, the Bulls are clearly putting their money in the group of companies that at the outset offer more guarantees of being able to survive the economic storm caused by the quarantine measures, implemented to contain the COVID pandemic. And who are these companies? Basically the ones that have the most growth potential and that have the financial capacity to overcome a period of lower revenues, now this niche is undoubtedly the great technology, with emphasis on the players that dominate the Cloud, Amazon, Apple and Microsoft segment.
But in addition to that I call attention to another sector, that of the credit service companies, namely Visa, MasterCard and PayPal, because these are businesses that generally benefit from economic crises, first of all because their customers go through a phase of less liquidity and therefore, they use credit cards more for purchases than they would at any other time. Such a correlation was visible in the 2008 crisis, where Visa and MasterCard emerged victorious and were recording new historical highs in 2011, while the S&P500 took almost two more years to do so.
