Investment Thesis: This too shall pass
It's remarkable how in just six months COVID 19 has become a seemingly permanent part of life and the economy. It isn't. Every cycle, investors forget that "this too shall pass" and fail to prepare for the inevitable rebound. The virus might remain in distribution well into 2021 but the impact is far from permanent, despite the headlines and prognostications.
We looked at pro-cyclical sectors that haven't rebounded. We compared the Nasdaq 100 to the S&P 500 and found banking and financials are still well below January 1 levels.