Phases of Covid-19 crisis:
Early- to mid-March 2020:
Fear of the coronavirus outbreak spreading rapidly translates into
reality, with the number of cases accelerating globallyLate-March 2020 onward:
Social distancing measures + lockdownsApril 2020:
Fed stimulus suppresses near-term survival anxietyMay-September 2020:
Recovery of demand, with the phased lifting of lockdowns - no panic anymore with number of cases appearing to have plateauedOctober 2020-February 2021: Unprecedented
surge in Covid cases forcing a fresh round of lockdowns across the nationSince March 2021: Ongoing vaccination drive and gradual re-openings drive an
improvement in demand - buoying market sentiment
Given the steady decline in the number of new Covid-19 cases in the U.S., we expect an improvement in demand to buoy market expectations. As investors focus their attention on expected 2021 results, we believe The Coca-Cola Company stock has the potential for some gains once fears surrounding the Covid outbreak are put to rest