We all know that Covid-19 has caused a lot of changes in our lives as well as the economy. Some of them are new changes, while others have been accelerated as a result of the pandemic. So when I was reviewing trade candidates this week, it’s no surprise that I saw that stocks were reflecting a trend in the economy. The shift to online shopping, for example, has been building for years. Shutdowns related to the pandemic accelerated the trend. This is shown in the chart below. Source: Federal Reserve This is a chart… Read More
We all know that Covid-19 has caused a lot of changes in our lives as well as the economy. Some of them are new changes, while others have been accelerated as a result of the pandemic. So when I was reviewing trade candidates this week, it’s no surprise that I saw that stocks were reflecting a trend in the economy. The shift to online shopping, for example, has been building for years. Shutdowns related to the pandemic accelerated the trend. This is shown in the chart below. Source: Federal Reserve This is a chart of the percent of sales at non-store retailers as a percentage of all retail sales. Non-store retailers include websites and catalogs with catalogs losing market share. This week, even Ikea decided to stop printing catalogs. The Swedish retailer finally accepted that the future of retail is online. This is a trend that is likely to continue. Even when brick-and-mortar retailers are allowed to reopen, consumers will continue to spend a large amount online. This is a certainty because the largest retailers are adopting e-commerce. Source: Visual Capitalist The top 10 e-retailers have about… Read More