We are living in a virtual age where engagement, interactions, and entertainment are primarily accomplished through a digital screen. The stay-at-home initiative has accentuated the world’s reliance on digital technology. The ease & convenience that technology has provided the world amid this global pandemic is conditioning society to depend on it. The innovation-driven companies that have been provided with an unlikely tailwind during this pandemic are catalyzing a growing spread between tech stocks and the broader equity market.
The Nasdaq 100 index, which is primarily driven by tech stocks, has outperformed the S&P 500 by more than 15% thus far in 2020 (illustrated by the TradingView chart below).
The post-pandemic world will be defined by shifting consumption patterns, which the equity markets have already pricing in. The virus is having a disproportionate impact on industries across the economy.
Disproportionate COVID Impact
The stay at home order is hitting retail, airlines,