Over the last twenty years, everyday life and work have become increasingly online/digital. The Covid-19 pandemic is giving a boost to this trend, as millions of people now rely on being connected to live, eat, play, communicate and exercise from home. This can be said to be reflected in the latest credit card spending statistics from Bank of America, which show that online spending is up 53% year-on-year, while total spending is down 24%. Thus, having an online presence has become vital for the survival of many companies.

 

Many industries have been hit hard by the viral outbreak; some due to the movement restrictions and some because the nature of their business simply does not allow them to have an online presence.

 

Still, there are some bright spots in the market. Measures to contain the spread of the virus are leading to a remarkable change in how consumers and businesses go about their daily lives, as much of the activity is currently occurring in people's homes. Companies that help to shape this “stay-at-home economy” are expected to be the long-term winners, even beyond the current Covid-19 pandemic.

 

Julius Baer has launched a dedicated tracker certificate on a “Stay-at-Home Economy” Basket consisting of fifteen companies in the following segments, which we believe are positioned to capture this emerging new economy – global data infrastructure (ENABLERS) that support this change in lifestyle, home entertainment (PLAY), collaborative tools and technologies (WORK) and online retailers (EAT & SHOP).