When selecting where to invest, one cannot take an overly simplistic view of the markets and individual securities. Unfortunately, this has been especially prevalent since the outbreak of the coronavirus pandemic.
Private investors flocked into supermarket stocks in March as the newspapers were filled with reports of panic buying and enormous queues. Yet increased costs and higher sales of lower-margin products meant this had a limited impact on their bottom line. It is a similar story in the healthcare sector; pharmaceuticals soared on every rumour of a breakthrough in developing a treatment for Covid-19, yet numerous biotech managers - some of whom own these stocks in their portfolio - have warned the public mood means these companies would be unlikely to charge much more than cost price for suc...
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