​Crisis Drives Investable Behaviors​​​

The coronavirus has impacted all of our lives, created new behaviors and shifted old patterns at work and at home, some of which will last even after the virus recedes. How can investors use these new trends to their potential advantage?​​
Crisis Drives Investable Behaviors ​​​​​​

  • The chart demonstrates how various activities and habits have changed in three large economies since the start of the coronavirus pandemic. Respondents in Germany, the U.K. and the U.S. have clearly stayed at home more. They have also visited stores less, shopped online more and worked from home more.

  • Many of these new behaviors are investable. E-commerce, digital payments and cloud computing driven by work and entertainment at home are some of the areas that investors may wish to consider.

  • With e-commerce still a minority of total retail sales and cloud computing accounting for less than half of company workloads, we believe these trends may have much further to go even after the pandemic ends. Potential beneficiaries of their growth may include e-commerce platforms where small firms can sell products and vertically focused online retailers that concentrate their busi​ness in one area. Additionally, we believe digital payment providers and networks, as well as cloud computing platforms and their infrastructure providers, may potentially benefit.

The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of July 2020. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Holdings and sector allocations are subject to change.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

Risk Disclosure: Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Technology companies may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of ​other companies.​

Fred Alger & Company, LLC 360 Park Avenue South, New York, NY 10010 

www.alger.com / 800.305.8547 (Retail) / 212.806.8869 (Institutional) ​​