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Coronavirus' Impact on Consumer Spending

Can e-commerce offset lower foot traffic?

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Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.

Consumer cyclical stocks have collectively seen the steepest recent sell-off after the energy sector. Social distancing, event and facility closures, canceled travel, and shaken consumer confidence will be felt by many companies. Even though consumer defensive sector share prices have held up relatively well, brewers have dropped 29% this year to March 19. In contrast, e-commerce retailers are benefiting. We see some investment opportunities to capture an eventual recovery in consumer confidence.

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Jelena Sokolova does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.