Investment Opportunities and Strategies in an Era of Coronavirus Pandemic

The COVID-19 continues to hit the world economy as well as the financial markets. As a result of the coronavirus spread across all continents, the majority of the investors face their portfolios painted in red ink, even though there are still opportunities to gain from the current pandemic situation. The traditional investment strategies have been well studied and well documented during economic booming. However, few research papers aimed at determining investment strategies during pandemic times. This paper is aimed to provide a thorough study of the factors affecting the stock prices, and to discuss unique investment strategies with appropriate risk management through the pandemic era. In this paper, an industry sector analysis is conducted, and factors affecting the stock market are analyzed by using alternative data sets as an additional source of tracking behavioral finance and developed a seven-step strategy. The results indicate that there are several industrial sectors that gained during the pandemic and could keep this pace in the nearest future and using the seven-step strategy could help in creating a full picture of the stock’s performance on the market.