Business in Post Pandemic World

The Apex Alpha Predator - Capturing Alpha for the Intelligent Investor

What should small businesses be anticipating in this murky post pandemic environment?

First, anyone starting up or at the helm of a young business can’t look past the political environment. This was proven when highly politicized and unprecedented lockdowns were mandated.

The industries that thrived were the pharmaceutical and big tech industries. Amazon, Netflix, Facebook, Google, Pfizer, Moderna, etc. cleaned up!

Chart below from Jan 2020 shows an 82.14% increase in the tech-heavy Nasdaq 100 versus a 24.80% increase in the Dow Jones Industrial Index

The Nasdaq 100 is loaded with technology stocks, and the Dow is composed of mostly established, industrial stocks.

More than ever, Great White Financial believes that small businesses need to implement the advantages that they hold over larger, more established corporate interests.

Small businesses can use a lot of the technology that larger firms use, and they can adapt much more rapidly than large companies that have layers of management that slow them down.

Many small business owners are unaware of tech solutions that can make all parts of their business run more efficiently. From staffing to operations management to CRM tools and more, using the right tech solutions to make your business more competitive will increase your profits and enhance your survivability rate. Schedule a meeting with a Great White Financial rep to begin an analysis of your business.

Touchless Pickup and Delivery – Here to Stay.

Doordash and Uber Eats were invigorated by the lockdowns and have presented delivery systems as a crucial component that restaurants should consider.

If the pandemic proved anything, it is that adaptable restaurants can actually gain market share as other restaurants throw in the towel.

Great White Financial has helped retailers and restaurants through the pandemic by creating delivery solutions with our partners and improving communication between businesses and their consumers.

Learn more about what restaurants can do…What Restaurants Can Do to Survive the COVID Outbreak.

Doordash and Uber Eats Cost BIG MONEY!

Read how Doordash and Uber Eats can cost the consumer up to 91% more!

Remote Work is Mainstream.

We believe that this transition is still in process. Many companies are unsure of the effect on worker productivity and morale that varying levels of virtual office work will have.

It is good for the environment and can eliminate stressful, unnecessary commutes. This is a positive effect of remote work that should not be overlooked!

Homes built to provide office worker efficiency are a wise investment!

There were huge shifts in housing market trends.

Upheaval in our major cities showcased the drawbacks to living in an urban environment. Many, tech workers especially, came to realize that the brick and mortar office is unnecessary. Zoom towns were born. People decided to build amenities and home offices and head for the hills!

Real estate is booming in the ex-urban regions of the country. Transaction rates in the space are high and competition is fierce.

Below, the NAHB Housing Market Index presents the persistent uptrend in the housing market since the pandemic. This shift is expected to persist.

United States Nahb Housing Market Index
NAHB/Wells Fargo Housing Market Index (HMI) is based on a monthly survey of home builders. They are asked to rate current sales of single-family homes and sales expectations for the next six months and to rate traffic of prospective buyers. Scores for responses to each component are used to calculate a seasonally adjusted overall index, where a number over 50 indicates more builders view sales conditions as good than poor.

Shifts in Commercial Real Estate

Go for a ride to where your bustling local shopping mall or retail outlets are. You’re sure to see some vacancies! In some parts of the country, retail shopping districts have vanished.

What will happen to commercial real estate?

Commercial properties are being utilized in new ways. Many are being outfitted as fulfillment centers for e-commerce or being used as multi-purpose spaces. For instance, a unit that was a single function space may now exist as warehousing, office, and retail space.

There are an array of unique factors affecting the commercial real estate space.

High net worth investors are buying into the space as a hedge against inflation. They are cycling into commercial over residential because residential is already so expensive.

Furthermore, central bank liquidity provisions have made available enormous amounts of money for capital investment.

The health and fitness industry has been turned upside down.

Gyms closed, and Peleton became a craze. The Peleton bubble seems to have burst. See below chart! It was a pretty sure bet that was bound to happen. After all, this is a product less innovative than Suzanne Somers’ Thighmaster. Their key product can be matched affordably with a stationary bike and a VCR! Peleton is a company that is going to have to do some serious innovating to get back to its bubble highs.

Americans have become more overweight; obesity related ailments are more prevalent; alcohol and drug abuse are on the rise.

Telehealth investment has surged, but preventive medicine and wellness solutions have yet to deliver what will turn the tide of the US population’s declining health.

Cryptos, NFT’s and Meme Trades

Any analysis of the post pandemic world requires a consideration of these phenomena!

It is a perfect storm for these technologies in many ways.

Concerning NFT’s and Cryptos, first the technology has to be there – Blockchain, that is. Next, to see the kitchen table kind of growth that we have seen, there has to be a precipitate. Something or many things occur to induce the wave of interest. Take a look at my analysis of the NFT Phenomenon to learn more.

This image has an empty alt attribute; its file name is unnamed.png
Great Ape #5012 – Current Price .08 Ethereum (8/4/21) From ‘Great Ape Society‘ featured on OpenSea

So, what to do moving forward?

As of the writing of this analysis, there are supply chain disruptions leading to inflation and product shortages. This will come to an end. How does a business position for ensuing trends?

If you are in an industry that can offer speedy delivery of your product, then you must provide it. Restaurants thinking of paying Doordash or UberEATS (read how Doordash and Uber Eats can cost the consumer up to 91% more!) should think about defending their margins by installing their own solution. Learn more about what restaurants can do…What Restaurants Can Do to Survive the COVID Outbreak.

The workforce needs a major overhaul.

Businesses that provide support to worker reeducation will succeed. The market needs truckers, home builders and renovators, career counselors, etc.

Healthcare is an industry where weakness has been exposed.

Telehealth solutions are being implemented at a break neck pace.

The general approach to wellness is not serving the population. There is a lot of room for innovative minds to make a difference.

A lack of leadership is at the core of what has led to a decline in life expectancy in our nation.

Innovation in media and programs that can contribute to rebuilding a sense of community are perhaps what we need most. Attractive media that supports wholesome and healthy values may eventually come to be in great demand. Let’s hope we can all find a way to become stronger after this challenging moment in history.

This material for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.

By Billy Lee

This image has an empty alt attribute; its file name is robovcar5-1024x750.png
Billy Lee as half robot.

Billy Lee, CEO of Great White Financial, is a sportsman, businessman, artist, speaker, writer, and producer.

Billy is the Founder of the Wellness Institute for Economic Growth and Kairos Athletics.

You can follow him on LinkedIn and Twitter.