Corona Pandemic: Not Only a Crisis, but Also a Great Opportunity

Corona Pandemic: Not Only a Crisis, but Also a Great Opportunity

Jean-Marie Mercadal of Ofi Asset Management, sees a whole series of positive long-term consequences of the current crisis – but also warns against drawing the wrong conclusions.

There will be a time after the corona crisis, on which investors should already focus, according to a recommendation by Jean-Marie Mercadal, who as chief investment strategist has a decisive influence on the direction of Ofi Asset Management. He states that the corona crisis has relentlessly exposed the weaknesses of the major economies. These include first and foremost the fragile international supply chains, the inadequate IT infrastructure and security, and gaps in national security strategies.

However, Mercadal does not see this as a threat to globalisation, as prosperity would be jeopardised if the crisis were to be reversed. It would therefore make more sense to intervene and make improvements only where necessary, such as in the case of dependence on certain suppliers. However, this is not a discussion that was only initiated by the Corona crisis; such considerations had already been taken up in the course of the trade war. However, the fatal dependence on subcontractors abroad has become tangible in recent weeks, which should lead to changes in the health, energy and food supply sectors and possibly also in defence.

But there are winners, too, Mercadal identifies the online world and the areas of environment, good corporate governance (ESG) and social affairs in particular: it has become clear that Internet security, 5G, network infrastructure and video conferencing are becoming increasingly important for decentralised work, as home offices are likely to become the norm in the future world of work. On the other hand, investors are increasingly demanding companies that not only operate sustainably but also treat their stakeholders fairly.

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