Global Opportunities Beyond the Radar

Ready to Deliver: 2 Undervalued Logistics Stocks

 

Quantum Wealth Summary

 

 


 

I was travelling back through Singapore’s Changi Airport when the risk of a deadly new coronavirus first came to my attention.

It was January 2020.

Most of the shop assistants at the airport were wearing masks. Not unusual in Asia if someone is sick. But definitely unusual when so many are wearing them.

We were quite ill when we arrived home.

Did we catch the first wave of Covid-19?

I will never know.

This pandemic did not become a global emergency seriously threatening financial markets until late February to early March 2020.

As countries were thrust into nationwide lockdowns by their governments, markets started to plunge.

It is what happened next where fortunes were made:

 

S&P 500 Index, January 2020 to July 2022. Source: Statista

 

Back in March 2020, we invested. But not enough.

We saw portfolios go from $1 million to $2 million between March 2020 and 2022, combining high recovery returns and the addition of cash and margin.

With the benefit of hindsight, we could have done more.

But, in our defence, we did not foresee one powerful force: the extent to which governments would ‘print’ money, barrelling cash into assets like stocks and housing.

Further, the state directly funded businesses in the form of wage subsidies and targeted industry support.

Our investments in one childcare property REIT in Australasia took off following federal support of that sector during Covid-19 lockdowns.

Perhaps we should have seen it coming?

Back during the GFC, the playbook was written. Back then, governments and central banks regretted they had not pushed out the monetary and fiscal rescue boat far and fast enough.

The March 2020 market crash provided the opportunity to do so.

Today, we face a new conundrum: the financial rescue from Covid-19 has caused inflationary pressure around the world. Interest rates are being hiked up fast. And the markets face new headwinds.

 

What I learned from the GFC and the March 2020 crash

 

Well, a few things:

One area where today’s market conditions are revealing value is in the logistics, warehousing, and e-commerce space.

Today, I want to report on 2 companies that could be sitting at value.

Could these present opportunity for future growth and income?

 

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