Understand Your Investment Horizon in a Market Driven By Coronavirus

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Investors may be wondering what--outside of earnings season--they should be watching or preparing for in this market, which is rallying Friday on a positive report that Gilead's remdesivir helped to treat COVID-19 patients at a Chicago hospital.

Brian Levitt, global market strategist at Invesco, joined TheStreet to weigh in on his thoughts about the road ahead and what it means for investors.

Watch the full video above for more.

Video Transcript:

Katherine Ross:
Folks, it's going to be a long road back to normal or even the new normal. So what does that mean for your portfolio? Brian Levitt, Invesco's Global Market Strategist joins me today. Brian, obviously we're awaiting the news if there's an official treatment for the Coronavirus that's been found and the economy's back up and running, but is the market jumping on report after report just proof that investors are looking far too short term or are they just trying to play doctor?

Brian Levitt:
Well, actually maybe they're trying to think a little bit longterm. I mean, the markets... If you're not going to be in these markets, then you're betting against policy, you're betting against human ingenuity and you're betting against science. And so I know that we get excited overnight with a report from Gilead, but I think the market is trying to look ahead 6, 9, 12 months and say, "How likely is it that we have better testing or some treatment, or even a vaccine at some point?" And so the market is trying to look out towards that rather than focus on what right now is disastrous economic data and a really bad earnings period.

Katherine Ross:
This is a long road ahead of us. I mean, with many officials have been saying that it could be July or even early fall before we really see things up and moving again. So at this stage, what's your key piece of advice for investors?

Brian Levitt:
Well, I think investors need to have... They've got to understand what they're trying to accomplish and they've got to understand what their horizon is. I mean, obviously if you have a three-month horizon, you want to be wary of being heavily exposed to risk assets. But if you have a 5, 10, 15-year horizon, then what you want to be thinking about is, "What does the next stage of this look like? Is this going to be a robust recovery or is this going to be a continuation of what is a very, very slow growth world?"

Brian Levitt:
And so in my mind, I suspect that we will be surprised to the upside at some point around treatments or testing and the ability to reopen the economy. We'll get excited about that recovery briefly, but we will find ourselves in a very slow growth world. And as investors, I think, in that environment, you want to look for growth wherever you can find it. And a lot of those big growth companies are leading this part of the market and I suspect they will going forward. This is going to accelerate a lot of change in society and the companies that are positioned to take advantage of that will be the big winners.

Katherine Ross:
Brian, thank you so much for taking the time to join us today. And for more on the Coronavirus pandemic, head on over to thestreet.com.

Brian Levitt:
Thank you.

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