In the second episode of Fundamentals, Aoifinn Devitt, Head of Investment – Ireland, explores whether the impacts the coronavirus are having on everyday life now will result in lasting effects for the future, particularly across the business landscape.
Stress testing healthcare systems
For Kunjal Gala, a co-portfolio manager in our Global Emerging Markets team, healthcare is one area in which he envisions change as governments will be forced to address the shortcomings of their public health systems after the virus recedes.
“Officials in Shanghai have already published a set of guidelines to make the city safer over the next five years from a public health perspective. They are going to deploy a lot of technology-based solutions to improve their preparedness for pandemics and improve the quality of the health system,” he said.
Indeed, he hopes that once a major city like Shanghai takes these steps, other cities in China – and across the world – will follow.
Gala also believes that the private healthcare sector has an important role to play in developing “world class healthcare at affordable prices for citizens in any country” – a theme our Global Emerging Markets team were looking at before the virus outbreak.
A post-pandemic future: expect a big tech spend
Steve Chiavarone, a portfolio manager and equity strategist in our New York office, believes the crisis will accelerate a lot of existing trends, such as automation, robotics and the Internet of things.
“We think that every company is going to do a self-audit – and they will ask themselves: what systems do we need to upgrade? what worked? what didn’t?
“We see a big tech spend coming out of this situation,” he said.
Chiavarone also thinks that the virus will accelerate the rise of online retailers and the decline of weaker bricks-and-mortar retailers.
To find out more, tune in to Fundamentals.
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