Coronavirus market crash: two industries I’m avoiding right now

first_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has recommended Compass Group and InterContinental Hotels Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images. Simply click below to discover how you can take advantage of this. Edward Sheldon, CFA | Monday, 16th March, 2020 “This Stock Could Be Like Buying Amazon in 1997”center_img Global stock markets having fallen a long way over the last month. I believe a major opportunity is now emerging for long-term investors. So I’m following what some of the UK’s top portfolio managers are doing. That is, cautiously drip-feeding money into the market.That said, I’m being highly selective about my investments. It goes without saying, some industries are going to be impacted more than others by the coronavirus. With that in mind, here are two industries I’m avoiding right now.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…AirlinesOne that’s likely to be impacted significantly is the airline industry. With the world going into isolation mode and countries closing borders, it looks like airlines are going to be hit hard.Already, major airlines such as British Airways and easyJet have drastically cut flying schedules. British Airways owner IAG said it will cut its flying capacity by at least 75% in April and May.“Demand is drying up in ways that are completely unprecedented,” says airline consultancy CAPA Centre for Aviation. Ultimately, this disruption is likely to have a huge impact on near-term cash flows and profits. Some airlines are at risk of going bust. Government support will most likely be needed.“European aviation faces a precarious future and it is clear that coordinated government backing will be required to ensure the industry survives and is able to continue to operate when the crisis is over,” easyJet’s CEO Johan Lundgren said last week.Without coordinated government support, some airlines could be bankrupt by the end of May, noted CAPA Centre for Aviation.Airline stocks have already been hit hard. IAG shares have fallen from near 650p to 280p over the last month. EZJ shares have plummeted from 1,500p to 540p. I won’t be buying though. Given that coronavirus could impact the travel industry for six months or more, I think airline stocks are way too risky right now.HospitalityAnother industry that’s likely to take a huge hit is the hospitality industry. Restaurants, cafes, pubs, bars, and hotels are all likely to be impacted in a big way.According to trade group UK Hospitality, some of the largest hotel chains, pubs, and restaurants may not survive for much longer if the government doesn’t step in. “These are cash businesses. Put simply, if you don’t have people coming through the door, you will run out of cash very quickly,” said the group’s CEO Kate Nicholls last week. Nicholls, who has described the coronavirus as an ‘existential threat’ to the industry, believes urgent government intervention is required. Within the FTSE 350, there are a number of hospitality stocks that I’ll be avoiding for now. For example, pub operators such as JD Wetherspoon and Marston’s. Then, there’s restaurant owner Restaurant Group, which owns brands including Wagamama and Coast to Coast. There are also hotel operators such as InterContinental Hotels and Whitbread. And remember catering companies such as Compass. All are likely to struggle in the near term. At some stage, some of these companies could be great buys. However, at present, I think it’s safer to avoid them. Coronavirus market crash: two industries I’m avoiding right now I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Edward Sheldon, CFAlast_img read more