What is Your Circuit Breaker Bundle?

On 5th May, Airbnb Co-Founder and CEO Brian Chesk touched upon his gloomy outlook for his business.

Two hard truths encapsulated his reasons for dismissing nearly 25% of his workforce.

  1. We don’t know exactly when travel will return. 
  2. When travel does return, it will look different. 

𝕳𝖆𝖗𝖉 𝕿𝖗𝖚𝖙𝖍𝖘 𝖋𝖔𝖗 𝖙𝖍𝖊 𝕾𝖍𝖆𝖗𝖎𝖓𝖌 𝕰𝖈𝖔𝖓𝖔𝖒𝖞

Indeed, the rise of the Sharing Economy has been halted dead in the tracks by Covid-19. Some of the most highly-valued startups in history are experiencing a far greater challenge than anything they’ve faced before.

The numbers are devastating. According to AirDNA, an online rental analytics firm:

  • New bookings on Airbnb: 👎Down 85%
  • Cancellation rates: close to 90%.
  • Revenue generated by Airbnb’s platform in March was 👎Down 25% YOY
  • MORE THAN $1 billion in bookings WIPED OUT

However, during this Circuit Breaker period, one particular economy and its basket of companies seem to come up tops.

𝕿𝖍𝖊 𝕮𝖎𝖗𝖈𝖚𝖎𝖙 𝕭𝖗𝖊𝖆𝖐𝖊𝖗 𝕭𝖚𝖓𝖉𝖑𝖊

I call them, the Stay Home Economy, aka the Circuit Breaker Bundle. These companies are companies that you utilize the most during this Circuit Breaker.

These include telecommunications, utilities, healthcare such as telemedicine, video and music streaming, home fitness, video games, and e-commerce.

Most of you may know it also as the FAANG stocks. Of course I’m not advocating that you buy them, (I don’t have a license in this . . . only for funds 😀) but I would urge you to take note, and prepare yourselves. These figures were simplistically derived from Current Price over 52 weeks High.

  1. Facebook 4.92% Discount
  2. Amazon 10.92% Premium
  3. Apple: 3.92% Discount
  4. Netflix: 2% Discount
  5. Google: 8.31% Discount

I believe that some of these will be poised to grow further because consumers, and corporates increasingly see these businesses as complementary to their needs.

There are only about 250-300 of such companies worldwide. And the trick would be able to find the suitable funds and the specific stocks to make your money work harder for you.

So . . . what is your Circuit Breaker Bundle?

#WealthNuggetsWednesdays #MARKofLeaders #XmarksTheSpot

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