Picking Winners and Losers

Posted by John Charles Kernodle on September 10, 2020  /   Posted in Newsletter

Our world looks a lot different than it did seven months ago. Some of those changes are probably temporary. But other changes may prove more long-term or even permanent. One of those changes that sticks out is the work-from-home (WFH) trend.

This movement isn’t new to our current situation, but the widespread adoption, for at least the short-term, happened faster than expected. Some companies are talking about bringing workers back to the office during 2021, but other companies are making big structural changes. For instance, Pinterest paid $89.5 million to cancel the lease on its new San Francisco office.

Pause for a moment and consider that a company considered it more cost-effective to spend almost $90 million to leave an office space. Other companies, including Apple, Facebook, and Twitter, plan to continue offering WFH options for employees even after social distancing needs come to an end.

So, why should this matter to you? It’s a classic example of the domino effect. When one big trend starts to take hold in the economy, it affects other areas of the economy, too. Changes in how and where people work have affected and will continue to affect the different industries. For example, travel (airlines, hotels, rental cars), food (restaurants, grocery stores), clothing (business attire, casual wear), and digital services (video conferencing, internet providers) are just a few of the industries that will experience both positive and negative outcomes.

When we see a systemic change like this one (42% of the U.S. labor force now works remotely), how on Earth could anyone predict the winners and losers? The short answer: You can’t. That’s why Strathmore Capital’s investing strategy focuses on owning a broad and diversified portfolio of the global markets.

We don’t know yet how much business travel will return to “normal” or if people will continue to do more video conferencing. We don’t know how quickly restaurants will return to full, in-house dining. Plus, if fewer people are working in offices, what will happen to the business lunch?

There are hundreds of other examples of what might happen, but you get the idea. There’s a lot we don’t know about what the future holds, and WFH is just one of those variables. But utilizing a disciplined, long-term investment strategy means you don’t have to guess how any single variable will affect your portfolio. It leaves you with more time to focus on the goals that matter most to you.

Please know that no matter what trends may hit the headlines next, we’re here to help answer your questions and make sure your portfolio continues to match your goals. At Strathmore Capital, we’re committed to helping you navigate both the ups and downs that come our way.

There is value in having a financial plan and working with a close-knit team to stay on track. Please let us know if someone you know might enjoy speaking with the professionals at Strathmore Capital Advisors.


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