Opinion
Smart ways to play the reopening trade
The key risk facing investors is a return to lockdowns in countries with high vaccination rates such as the UK, US, the Nordic countries and Israel.
Mark DraperContributorTo many Australians right now, the reopening of the economy must seem like a mirage. Investors should consider the opportunities that come from depressed share prices in sectors hit hard by lockdowns, otherwise known as the reopening trade.
The reopening trade seeks to invest in businesses that have been negatively affected by COVID-19 and are trading well below their valuation based on a normal operating environment. Obvious candidates include travel, shopping centres, airports and even private hospitals, which have suffered due to cancellation of elective surgery.
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