Could many of the routines developed while consumers work or attend school from their homes during the coronavirus pandemic become ingrained, depending on how long it takes for economic activity—and life—to return to normal?
"This is why I think several of the consumer trends that either began or accelerated in 2020 could be long-lasting," says Jason Weiner, co-portfolio manager of Fidelity® Growth Discovery Fund (FDSVX).
Stay-at-home measures have accelerated the corporate shift to the digital workplace, Weiner says. He thinks that if corporations didn't previously have the need for true work-from-home solutions, complete with cloud presence, identity management, and digital software applications, they do now.
Weiner, along with co-manager Asher Anolic, believes that Microsoft (MSFT) could benefit from this trend for multiple years.
Consumers' demand for in-home entertainment also could bolster particular market segments, Weiner says.
For example, he's been bullish on companies that provide video games, and maintained outsized exposure to major players. He notes that Tencent (TCEHY) also has benefited from being a leading social media platform and financial payments innovator in China.
In addition, Weiner thinks consumers and workers will demand higher levels of hygiene and health consciousness. Companies that offer products or processes that help in this regard could see long-term tailwinds, he believes.
Fidelity® Growth Discovery Fund (FDSVX) held securities mentioned in this article as of its most recent holdings disclosure. For specific fund information such as standard performance and holdings, please go to the fund ticker symbol link on this page.
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