The coronavirus pandemic has forced decision-makers to change their perspective on the economy and adapt to the new normal. In this unprecedented moment, we propose solutions which will trigger a new impulse for development. Micha Kurtyka presents Polands view on the green investment plan.

Micha Kurtyka is the Minister of Climate of the Polish Republic. This opinion piece has been written exclusively for EURACTIV.com.

Polands ambition is to make green investments the pillar of the changes, as they are going to allow to build a modern economy of tomorrow and move closer towards the objectives of the EU climate policy.

The current pandemic has reinforced our belief that the path of transformation leading towards low and zero emissions is absolutely correct. Poland absolutely needs green investments as they are going to help drive the economy, create new jobs and strengthen the competitive advantage of our domestic businesses on the international markets.

Following that path will give us a chance to develop and is going to bring us specific economic benefits. That is why in this year alone, the Ministry of Climate will utilise, for instance, the EU, Norway and national funds, and put PLN 7.8 billion (approximately 2 billion) towards facilitating green investments.

The funds will be used to implement projects related to energy transformation, improving air quality, thermal upgrading of buildings, development of electromobility, investments in RES micro-installations or solutions related to mitigating the effects of drought.

Poland has been consequently supporting the development of renewable energy sources, i.e. in the form of an auction system. Since 2016, new capacities have been contracted a total of 1.7 GW in photovoltaic installations and approximately 3.4 GW in wind farms.

The total value of the support amounted to over PLN 38 billion (approximately 8.7 billion), out of which PLN 37 billion (approximately 8.4 billion) has been put towards new installations.

The auctions planned for this year will result in creating a power output of over 2.4 GW coming from new, green power sources, out of which 800 MW will be generated from wind energy, while 1.5 GW will come from solar power. That fact positions Poland in the first place in the EU in terms of the total area of onshore wind farm construction.

Implementing the new investments will also accelerate the transformation.We are aware of the fact that the coronavirus did not make the problems and challenges of the energy sector disappear.

In the context of Poland, the key issue will be to replace the old coal-fired power stations with zero-emissions power sources installed in onshore and offshore wind power, photovoltaics and low-emission power sources such as natural gas or nuclear power while maintaining energy security.

The scale of the challenges facing our country is incomparable to other EU member states. We believe that climate transformation may be combined with the plan to rebuild the economy after the pandemic, but that requires involving considerable resources in order to make our ambitions become a reality.

Just several years ago, nobody would have thought that Silesia, which for centuries has been a centre of coal mining and an industrial area bringing together numerous energy-intensive industries, would become the centre of the global discussion on the climate policy and the search for the methods to counteract climate change.

The key decisions to protect our planets climate were taken in Katowice during the COP24 summit. What seemed impossible has now become a fact. It showed that Poland is an active participant of the global discussion on climate change and the transformation of economies towards low and zero-carbon emissions.

The concept of Just Transition ensuring environmental protection without slowing down the economy and with due respect to jobs was introduced by Poland.

Our country supports the EUs ambitions regarding achieving climate neutrality by the entire Union until 2050. However, Polands acceptance of the aforementioned commitment as a national goal depends upon the availability of the funding for energy transformation, social acceptance and ensuring that the industry remains competitive.

We cannot allow for a situation in which the costs of the changes will be incumbent upon the weakest, while the industry decides to relocate manufacturing outside of the European Union in fear of additional costs.

Climate ambitions of the European Union must therefore be realistic, i.e. they must account for the effects of the coronavirus pandemic and the situation in the individual countries.

Since the beginning of the discussion on climate neutrality we have been stressing that despite the fact that evolution of the economy and the energy sector is in our best interest, it must be carried out in a responsible manner with care for the poorest.

We should not begin discussions which may increase the burden and hinder the post-pandemic recovery of the economies. Each crisis involves not only challenges but also primarily opportunities for a new beginning and building a future based on new, green, low-emission investments.

Therefore, we welcome the Recovery Fund proposed by the European Commission of an estimated total value of 750 billion which aims, among others, to facilitate economic growth based on green investments.

From the perspective of the transformation of the energy sector, the key role will be played by the increase of the Just Transition Fund from 7.5 to 40 billion, as Poland will become one of its key beneficiaries.

We view the Commissions proposal as an expression of confidence that our country will take active measures towards a low-carbon economy.

We believe that investments in the energy sector, in particular in RES, are required in Poland as well as in the entire EU, as they may significantly drive the impulse for the recovery of the economies after the coronavirus pandemic.

Today, we must think about how to take advantage of the opportunities and the possibilities to increase the pace of the economic transformation in Poland.

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Green investment plan will be an impulse for economic growth - EURACTIV

Some investors see recent volatility as a way to get rich quick. Trying to outsmart the market can end very badly.

Last week, 20-year-old traderAlexander Kearnsusing the Robinhood platform committed suicide after a series of risky options trades left him deep in the red. In the note to his family, he said he had "no clue" what he was doing.

"Financial access without knowledge can destroy lives and, as seen here in its most extreme form, can tragically end them," said Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth.

Still, the number of young investors trying their hand at trading through Robinhood and other major on line brokers has spikedduring the Covid-19 market sell-off and rebound. A spokesperson for Robinhood said they "are deeply saddened to hear this terrible news and we reached out to share our condolences with the family," in an earlier statement to CNBC.

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Considered a "generational-buying moment," young and inexperienced investors view the coronavirus-sparked recession as an entry point into the world of investing. Investor newbies are even piling into the beaten down airlines and cruise lines, as well as speculative stocks like Hertz.

The recent tragedy underscores the risk that comes with complicated financial instruments like options trading, which gives a trader the right but not the obligation to buy or sell an asset at a specific price, on or before a certain date. Traders use it to hedge risk, or speculate.

"These are extraordinary complex securities and trading strategies and yet they are readily available to anyone who chooses to open up an account, it's as if we are handing out firearms to children," saidRic Edelman, the founder of Edelman Financial Engines.

As with commodities and other futures investments, "you not only have to be right, you have to be right at the right time," Edelman said.

Commission-free trading coupled with a lack of sports betting and other forms of gambling have all helped drive interest in such speculation by retail investors, who are favoring riskier plays in smaller dollar amounts.

That is also what has propelled trading in the stocks of bankrupt companieslike Hertz.In that case, shares of the car rental company rallied even after the company announced it hadsuspended its plan to sell up to $500 million in stock amid Chapter 11 bankruptcy proceedings.

"The problem with Hertz, specifically, is that the economic value of the shares is zero," said Michael Crook, head of Americas investment strategy at UBS Global Wealth Management.

"There's a very high probability that someone purchasing shares would lose all of their money."

"The overall theme here is mistaking hoopla for investing," Boneparth said.

A better solution is to stay focused on an investment plan rather stock picking, he advised.

Stick with adiversified mixof stocks and stock funds to protect against losses and limit the downfall from some high-risk investments, he said."There's no single asset category that is going to solve all of your problems."

Further, keep your long-term goals in mind. "If you are saving for a home, are you really going to take all, or a big portion, of your home savings and throw it into an investment that could be cut in half?" Boneparth asked.

If there are specific shares you want to own, set aside a portion of your portfolio for those positions, Boneparth said, and research the financial health and well-being of those companies as well as the executive team and future outlook.

"I have plenty of clients that manage a small portfolio of stocks on their own," Boneparth said.

"If with 5% to 10% of your investable assets, you went out and bought 10 companies, it won't be all that bad if you get a couple wrong and couple right," he said. For instance, "if you were wrong about Hertz and right about Tesla."

"If you want to own Hertz, make it half a percent of your net worth, for example," added Crook. "If it's right, and you make 10,000%, you don't need a large position."

The same goes for keeping small positions in other tricky investment plays, includingoil futures contracts andreal estate investment trusts, orREITS,Crook said.

"Almost anything can fit into a portfolio at the right allocation," he said.

Those who are verynear retirementor whohave short-term goalsshould still keep a chunk of their savings in cash, certificates of deposit and high-quality short-term bond funds to further shore up their financial profile.

And finally, consider talking to a financial advisor who can work with you as you review your goals, reassess your risk and come up with an investment strategy that pays.

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Don't let the recession tempt you into these risky investments - CNBC

Understanding which of the two forms of investing would benefit your finances the most

As an investor, be a newbie or not, you would have often heard to always keep track of what you own and to take stock of your assets.

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Another such advice would be to learn as much as you can about passive and active investing basic but simple investment strategies we explore in depth here.

If you are just starting out in your investment journey like with anything new what you would first need is a strategy on how to go about it.

If youre involved in this debate, theres really no perfect answer as to whether either of these strategies is intrinsically better. Instead, each investors individual circumstances will shed light on which is the more beneficial choice for them.

What is active and passive investing?

Active investors purchase investments and continuously monitor their activity to exploit profitable conditions.

On the other hand, passive investing broadly refers to a buy-and-hold portfolio strategy for long-term investment horizons, with minimal trading in the market.

Index investing is perhaps the most common form of passive investing, whereby investors seek to replicate and hold a broad market index or indices.

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Now that we have got a rough idea of the two, lets now break each of them down and analyze which one would benefit you the most.

Unlike passive investors, who invest in a stock when they believe in its potential for long-term appreciation, active investors typically look at the price movements of their stocks many times a day.And most of the time, active investors are seeking short-term profits.

Perks to active investing

For example, during the height of the 2008 financial crisis, investment managers could have adjusted portfolio exposure to the financial sector to reduce their clients risk in the market.

Active investing allows money managers to meet the specific needs of their clients, such as providing diversification, retirement income or a targeted investment return.

In doing so, a manager chooses from several investing strategies to ensure the goal is met, which cannot then be compared to a benchmark.

Investors can use active investing to take advantage of short-term trading opportunities. Traders can use swing trading strategies to trade market ranges or take advantage of the momentum.

Stock prices oscillate for the majority of the time which creates many short-term trading opportunities.

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Active investing can be costly due to the potential for numerous transactions. If an investor is continually buying and selling stocks, commissions may significantly impact the overall investment return.

Charges: Key risks associated with active investing

Active management fees can range from 0.1 per cent to over 2 per cent of assets under management (AUM).

Active money managers may also charge a performance fee between 10 per cent and 20 per cent of the profit they generate.

Active funds also often set minimum investment thresholds for prospective investors. For example, a hedge fund might require new investors to make a starting investment of $250,000 (Dh918,262).

Passive investing methods seek to avoid the fees and limited performance that may occur with frequent trading. Also known as a buy-and-hold strategy, passive investing means buying a security to own it long-term.

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Passive investing is, as touched upon earlier, the better investment option among the two strategies for most individuals. That, of course, doesn't mean it will yield the best returns.

On the contrary, it means when other investing unknowns are taken into consideration, it's currently the most reliable method to yield the most stable results.

Benefits of passive investing

It is an investment choice that costs below 1 per cent annually to own. Without having a manager to make frequent changes, the middle-man expense is cut off.

In short, this means youll lose less of your returns to management.

ETFs and mutual funds are staples of passive investing portfolios. They all also have a couple characteristics in common: professional management and inherent diversification.

When you invest in stocks, bonds or any other security on a singular basis, its up to you to choose which ones you want and when to buy and sell them.

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But because investment professionals manage the aforementioned trio of funds, youll reap the rewards of strong diversification and asset allocations without getting your hands dirty.

You do this by not putting all of your eggs in one basket and diversifying. Using mutual funds or ETFs that accurately track an index you are investing in you are investing in the entire market.

By not using actively managed funds for most investment choices, you are not actively trading. This not only means less effort, it also means less prone to short-term fluctuations.

What are the downsides to passive investing?

So while the overall performance of these funds dictates your eventual returns, the investment decisions are not under your control.

Thus, this lack of customization and flexibility could leave passive investors feeling like theyre not involved enough in the overall management of their money.

However risky as it may be, passive investing technically has less return upside than strategies that look to beat the market through stock-picking and recurring trades.

In return for this trade-off, though, passive investors regularly see slow and sustained growth.

What this decision ultimately comes down to is your risk tolerance, which is your ability to stomach volatility in the hopes of higher returns.

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While no equity-focused investment approach can be called safe, a portfolio more focused on matching market returns is safer than one seeking to beat or time the market.

On the other hand, if risky investing is within your means, an active portfolio could be more fitting.

Your investment goals matter!

For example, lets say theres a 25-year-old who wants to buy a home over the next few years and a 30-year-old whos saving for retirement. The investments they should make are drastically different.

Because the future homeowner is closing in on his or her goal, he or she might consider high-risk, high-reward investments.

Retirement is far away for the 30-year-old, though, allowing this person to stick to passive investing if he or she so chooses.

If you want an actively-managed portfolio, know that you will encounter more fees than a passive investor will.

Because active management calls for consistent trades to beat the market, youll likely spend a significant amount in transaction fees. Passive investors prefer to buy and hold securities, lowering their extraneous costs in the process.

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But keep in mind, before investing any money in the market, you should take some time to learn about the strategies that will suit you best.

So although passive investing has comparatively more perks, that doesnt mean its the right strategy for everyone.

What investing style benefits the average retail investor?

Especially in an uncertain economy, active funds will perform better than the broad market.

The logic is simply that a basket of stronger companies, cherry-picked by fund managers, is likely to perform better than the broader markets, irrespective of the economy.

If you consider any relevant markets inefficiency, there are a lot of opportunities here that can be capitalized upon by active managers.

Most good-quality actively-managed funds have a standard deviation lower than that of their benchmark index.

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Contrary to popular perception, market volatility can be a blessing for the active fund manager by throwing up opportunities to pick quality stocks at attractive valuations.

Many businesses that appear over-priced at one point will be available at very attractive valuations at another.

Suppose the value of a company gets eroded by 10 per cent, but if the fall in its stock price is 30 per cent, the fund manager entering it enjoys a 20-percentage point margin of safety. Bigger the margin of safety, safer the investor is.

Passive investing too has its place for a retail investor

According to the latest S&P Indices Versus Active report, many categories of active funds are, on an average, underperforming their benchmarks even over the long-term.

While passive funds cant give you market-beating returns, they dont underperform either (or do so only by a small margin, called the tracking error).

Moreover, while a small proportion of active fund managers will always beat their benchmarks, predicting in advance who among the hundreds operating in the mutual fund universe will do so is a very difficult task.

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Also, returns of active fund managers tend to oscillate. A fund manager who was a top performer over the past five years may not remain so over the next five years.

Moreover, the index is created by independent index providers using transparent rules. Theres no fund manager bias in indexing, as happens in active investing. It also comes with advantages like low cost and diversification.

Originally posted here:
Breaking down the importance of active and passive investing strategies in day-to-day finance - Gulf News

The Walt Disney Company (NYSE:DIS) has been a gem over the years. The company has a seemingly unstoppable ability to dominate every facet of the entertainment industry. Walt Disney would probably be astounded at the technological leaps that have provided Disney with new areas of growth these days. Even in the wake of the COVID-19 pandemic that shut down its theme parks and shuttered movie theaters, Disney stock carries appeal. Now swinging big in the streaming industry, Disney is pressing into the newest area of consumer entertainment.

So if you had been able to invest in this timeless enterprise back when Disney took it public, just how much would you have today? The answer is pretty staggering.

Image source: Getty Images.

Disney's IPO pricing for the original OTC stock was $5 per share back in 1946. Investing $5,000 would have netted you 1,000 shares of the company. The important thing to take into account here is that the stock has split multiple times through its existence. With seven splits in total from that initial offering, an initial purchase of 1,000 shares would have become 768,000 shares today.

Going off of a June 11 price of $116.59 per share, that initial $5,000 investment is now worth a whopping $89,541,120. That's a 17,907% return.

Keep in mind, however, that this was based on Disney's original OTC stock. Its IPO for the NYSE occurred on Nov. 12, 1957, with an initial price of $13.88. That IPO was led by Goldman Sachs.

It was far more likely that the average person invested in this offering. A $5,000 investment at $13.88 a share would have gotten you 360 shares. Factoring in all the stock splits would have turned those 360 shares into 141,312 today. At a price of $116.59 per share, the $5,000 investment in the IPO would be worth $16,475,566 today.

Since that debut in 1957, Disney has been one of the best investments around. Over the last 20 years, the stock has gained 203.9%. That outpaces the S&P 500 by roughly 119.3%.

These days, we're watching the major entertainment names like Disney try their hands at producing increasingly popular streaming content. Disney's acquisitions of Twenty-First Century Fox, along with Hulu, have positioned it to be very competitive in that market. With Disney+ bringing in more than 50 million subscribers in just the first five months, streaming has also been a key lever for Disney at a time when its traditional businesses, such as theme parks, have been severely threatened by the COVID-19 outbreak.

Even after a rally, the stock is down around 20% for the year. Theme parks are scheduled to cautiously reopen in July, but investors are going to be watching closely for signs of a second wave of COVID-19 before Disney can really find its footing. Any setbacks in the reopening of the economy could create a big headache for the physical side of the company's business. Unemployment will play a factor here as well, as the propensity for people to spend on things like theme park visits will likely be low when people aren't working.

With Disney, it pays to look at the big picture through time. Yes, 2020 is not a year for the record books -- at least not in a good way. For the next decade, though, Disney still seems well-positioned. Online content is going to be the battleground in the entertainment industry; there's no getting around that. Disney has prepared itself well through acquiring strong assets and building out its own Disney+ service. Once theme park gates reopen and the company can get back to the box office, the puzzle should all fit together nicely for this blue-chip stock.

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If You Had Invested $5,000 in Disney's IPO, This Is How Much Money You'd Have Now - Motley Fool

A windfarm at sunset. Research suggests sustainable funds are longer-lasting than their peers. Photograph: Tim Phillips Photos/Getty Images

Environmentalists cheered by huge improvements in air quality during the lockdown and the collapse in coal power generation have another reason to celebrate. Even the stock market has gone in their favour.

A detailed number-crunching of environmentally sustainable funds has revealed that they have outperformed traditional funds across the board beating them during the pandemic as well as during the 10 years up to and including the coronavirus sell-off.

The data, from the global research agency Morningstar, comes amid growing evidence that environmentally focused investing once pigeonholed by City traditionalists as only for a vegan/hippy minority is becoming mainstream. This week, Vanguard, one of the worlds biggest fund managers, launched two ethical index funds aimed at UK investors, while Aviva, Britains biggest insurer, unveiled a climate transition fund.

Morningstar examined 745 sustainable funds and compared them against 4,150 traditional funds, and found they matched or beat returns in all categories whether bonds or shares, UK or abroad.

The outperformance continued during the coronavirus crisis

Average returns and success rates for sustainable funds suggest that there is no performance trade-off associated with sustainable funds. In fact, a majority of sustainable funds have outperformed their traditional peers over multiple time horizons, it says.

Over 10 years, the average annual return for a sustainable fund invested in large global companies has been 6.9% a year, while a traditionally invested fund has made 6.3% a year.

The outperformance continued during the coronavirus crisis. In all but one category considered in the study, sustainable funds outperformed, with average excess returns in Q12020 ranging between 0.09% and 1.83% across categories, Morningstar says.

One reason may be that many US tech stocks, popular among environmental investors, have soared during the crisis, while shares in oil, gas and coal companies have plummeted. The Nasdaq index of US tech stocks has recovered completely from the coronavirus crisis, reaching new highs this week, while the oil giant ExxonMobil is trading at $53 compared with $70 before the lockdown.

The Morningstar researchers noted that sustainable funds are longer-lasting than their peers. One of the tricks of the asset management industry is that funds that do badly are quietly removed usually by merging them with another, better-performing fund. This has the effect of flattering the overall performance figures, suggesting that investors are doing better over the longer term than they really are. Morningstar found that three-quarters of sustainable funds lasted 10 years or more, compared with less than half of traditional funds.

Campaigners welcomed the confirmation that sustainable funds are better. Michael Kind of ShareAction a charity and company that promotes responsible investment says:Its very positive, but also not surprising, to see that funds with robust environmental, social and governance (ESG) strategies are overall better performers financially. We hear from savers very often that one of the biggest barriers to action is that there is a perception that you will lose out financially if you switch to investing responsibly.

But is this enough? No we would expect more ambitious and authentic ESG funds to deliver better outcomes for stakeholders and the environment but not inevitably to deliver investors more money every time.

Research what funds your pension/Isa/investment provider offers you.

Look into the holdings and stewardship/investment policies of your funds, or those you are considering putting money in. These policies show how your asset manager will invest your money and try to influence companies on your behalf. You can either do this on your own or ask your investment (or pension) provider/employer/financial adviser for this information.

It is important to see how your investment provider votes at the worlds largest companies AGMs. Are they voting for climate action and supporting human rights?

ShareAction recently produced an independentglobal rankingof the most responsible asset managers across many topics. Use it to make an informed decision when selecting a manager.

Use resources from organisations such as Climetrics, Boring Money and Good With Money.

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Ethical investments are outperforming traditional funds - The Guardian

U.S. stockshave recovered robustly following March's virus-induced sell-off, prompting many to returnto the markets to make gains and recoup losses.

The S&P 500 erased its 2020 losses and the Nasdaq Composite reached a new record Monday, even as officials declared that the U.S.entered a recession in February.

That might suggest the region's return as an investing hot spot. But, as the dollarcontinues to tumble amid ongoing central bank stimulus, investors may be wise to look to other markets for wealth-building opportunities.

Asiacould offer one highlight, according to advisors CNBC Make It spoke to.

There is a good chance that Asian currencies are going to outperform the U.S. dollar.

Freddy Lim

co-founder and chief investment officer, StashAway

That presents an opportunity for investment in the region particularly for Asian investors who would otherwise be hit by foreign exchange losses when investing in U.S. dollar-denominated stocks, according to Freddy Lim, co-founder and chief investment officer of StashAway.

"There is a good chance that Asian currencies are going to outperform the U.S. dollar over the next 18-24 months," said Lim of the Singapore-based digital wealth manager. "This also means that Asian-based assets could start looking interesting in local currency terms."

Looking at Asia's major markets, Singapore's Straits Times Indexappears attractive, offering access to "steady, high quality names with a long track record of navigating past epidemics," said Lim.

Other industrialized Asian markets, such as South Korea, Hong Kong, Taiwan, as well as China, also look to be relative "winners" compared with their less developed regional counterparts,according to HSBC Singapore's head of wealth & international, Ian Yim.

Focused young man working with a laptop in the bedroom at home.

Oscar Wong

"In addition to being attractively valued, they have lower exposure to commodities and oil, and have proven themselves to be better equipped to cope with the Covid-19 crisis," said Yim, highlighting the various factors at play in the market.

More specifically, industries with strong fundamentals that have been accelerated by the virus, such as e-commerce, the internet, and China's new economy, are likely to do well, agreed Yim and Lim.

"E-commerce-enabled companies have proven to have robust business models and can potentially reap the benefits of changing consumption behavior in future," said Yim.

Outside of the stock market, other investments in Asia show promise, notedSamuel Rhee, chairman and chief investment officer of Singapore-based digital advisory Endowus.

Asian fixed-income bonds, in particular, have fared well under governments fiscal response to the virus, and provide some all-important investment diversification, he said.

Time in the market is more important than trying to time the market.

Samuel Rhee

chairman and chief investment officer, Endowus

"For bonds, regionally, we see value in Asia, where yields have increased," HSBC's Yim agreed.

Real estate, or real estate investment trusts (REITs), on the other hand, could present some "vulnerabilities," given the virus' impact on the sector, said Rhee.

Before taking advantage of any investment opportunity, it's important to come up with a strategy. Outlining your financial goals and how much you can afford to invest is a great place to start.

StashAway's Lim recommended systematically investing a fixed sum each month. According to StashAway'sInsights 2020, "systematic investors," who invest continuously through a downturn, perform better than those who withdraw during a correction.

There are plenty of digital wealth managers now available to help you do that; automatically investing in passively-managed index fundsor exchange traded funds (ETFs) that track specific regions or sectors. Not only does that take the hassle out of monitoring the markets too closely, it also allows you stay invested for the long term, said Endowus' Rhee.

"Time in the market is more important than trying to time the market," said Rhee. "(That) has been proven to be a futile effort as the recent rapid fall and the equally rapid rebound has proven again."

Don't miss:Tech, health care and energy: Investing experts share where they're placing their bets

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As markets recover, here's how to make the most of your money in Asia - CNBC

Fear has once again returned to the financial markets.

An alarmingly high number of new COVID-19 cases across the U.S. and many other countries is forcing investors to once again consider the potentially devastating health and economic impact of the deadly disease.

And yet, even in the middle of a global pandemic, there are ways to protect and grow your wealth. Here are five outstanding companies that can help you do so -- and that you can safely invest in today.

Here's where to invest your money now. Image source: Getty Images.

While many businesses will suffer during the COVID-19 crisis, Amazon.com (NASDAQ:AMZN) stands to benefit from a coronavirus-driven acceleration in the growth of e-commerce. The online retail juggernaut served as a lifeline for millions of people while they sheltered in place during the early stages of the pandemic. Many people shopped on Amazon.com for the first time during this period, and now that they've seen firsthand the savings and convenience online shopping can provide, they're likely to remain loyal customers even as stay-at-home orders end.

Johnson & Johnson (NYSE:JNJ) is one of the companies working to create a potentially life-saving vaccine for COVID-19. The healthcare titan has partnered with the Biomedical Advanced Research and Development Authority (BARDA) to accelerate the development of its vaccine candidate for SARS-CoV-2, the virus that causes COVID-19. Just days ago, J&J announced that it would begin clinical trials in the second half of July, about two months sooner than expected. J&J has committed to spending more than $1 billion to fund these efforts, and it's already ramping up its manufacturing capabilities, in order to be able to make over 1 billion doses, should its vaccine prove safe and effective.

The coronavirus pandemic has been devastating for a huge swath of the traditional retail industry. Thousands of brick-and-mortar stores were forced to close due to stay-at-home orders, and, sadly, many will never reopen. Entrepreneurs are adapting to this new post-pandemic reality by embracing e-commerce, and Shopify (NYSE:SHOP) is giving them the tools they need to be successful. Shopify serves as an online retail operating system for businesses of all sizes, with tools that allow merchants to build online stores, manage inventory, process payments, ship products, and even apply for loans. Shopify has become an invaluable partner for more than 1 million businesses, and it's likely to play a key role in an eventual economic recovery.

The coronavirus pandemic has placed cleaning and sanitizing efforts in the spotlight, and companies like Clorox (NYSE:CLX) provide consumers with the products that make them feel safe. Clorox produces several of the items on the Environmental Protection Agency's list of disinfectant products that are effective against the novel coronavirus. Moreover, buying shares of Clorox could help you profit from the surging demand for bleach, hand sanitizers, and disinfectant wipes during the COVID-19 pandemic.

Apple (NASDAQ:AAPL) is a financial powerhouse. With more than $90 billion in net cash on its fortress-like balance sheet and over $65 billion in annual operating profits, the technology titan can withstand a stock market crash better than perhaps any other business. In fact, a lower stock price could work in investors' favor, as Apple would be able to repurchase its shares at even more attractive prices -- and remaining shareholders would be entitled to an even greater share of its enormous profits. Better still, those profits are set to increase, fueled by projected growth in Apple's booming services and wearables businesses, as well as a likely 5G-driven iPhone refresh cycle in the coming years.

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Stock Market Crash: Where to Invest Your Money Now - The Motley Fool

The stock market has been in manic-depressive mode as of late, surging early in June on the euphoria of the country's economic reopening, as well as a surprise jobs gain in the June 5 labor report. However, the market gave almost all of those gains back late last week, after some gloomy commentary from Federal Reserve officials, who now plan to keep interest rates at zero until at least 2022.

What does all of the volatility mean? That you can pick up shares of great companies to buy and hold for the long term. And while stocks relating to the reopening economy have shown a big rally lately, I think it may be time to refocus on stronger technology-related companies that help power the new, more digitized economy. And with lower interest rates here until at least 2022, these companies, which can grow even in a depressed economy, should fetch a premium down the road.

In that light, here are three rock-solid companies that play into these long-term trends. Got an extra $5,000? Then you should think about scooping up shares of these three top companies today.

Image source: Getty Images.

With businesses reeling from COVID-19 and many companies allowing work-from-home for the foreseeable future, securing enterprise communications among a distributed workforce is more important than ever. Thus, cybersecurity solutions are at a premium as never before.

Not only is the cybersecurity sector poised for long-term growth, but CrowdStrike (NASDAQ:CRWD) also appears to have a novel solution poised to take market share within the industry. CrowdStrike combines its software-based Falcon agents, which can be deployed to any "end point" in an enterprise's IT stack over the cloud, with a centralized artificial intelligence-based Threat Graph that uses all agent data to continuously improve algorithms for the entire customer base. Thus, the more customers CrowdStrike gets, the better its threat detection algorithms, which helps attract more customers, and on and on.

As proof of CrowdStrike's effectiveness, look no further than its blockbuster recent results, reported on June 2. Total revenue was up a whopping 85%, with core subscription revenue up 89%. Annual recurring revenue was up 88%, and the company's subscription customer count more than doubled, up 105%.

Also unusual for a cloud-based software-as-a-service company, CrowdStrike is generating some serious cash flow, although GAAP net profits are still negative. Operating loss improved from $25.8 million in the year-ago quarter to $22.6 million in the first quarter, but operating cash flow surged to $98.6 million from just $1.6 million a year ago, and free cash flow increased to $87 million, up from a free cash flow loss of $16.1 million a year ago.

Even if COVID-19 cases surge in a second wave and the economy stagnates, enterprises are still going to need cutting-edge solutions to secure their infrastructure and avoid the costly breaches we've seen over the past few years. In addition, CrowdStrike's growth and margin expansion are some of the best you'll find in the entire market, making the stock a buy even after a strong recent run.

Another company poised to grow no matter what the economy is doing is European semiconductor equipment manufacturer ASML Holdings (NASDAQ:ASML). Unlike many other companies in the semiconductor and memory space, ASML has seen its stock rocket higher, to even exceed where it was to start the year.

That's because ASML has a differentiated offering, having cracked the code on Extreme Ultraviolet Lithography technology. EUV is a mission-critical technology needed to produce more advanced semiconductor chips and DRAM memory at scale over the next decade, and ASML has a monopoly on it.

While the chip sector, and therefore semicap equipment companies, have traditionally been cyclical, and thus wouldn't be a great place to invest in a recession, things may be different this time around. Leading-edge semiconductors are crucial to making the digital economy run, powering cloud computing, artificial intelligence, 5G communications, and the Internet of Things. While ASML's first quarter revenue was affected by COVID-19, that was entirely due to supply issues, not demand. Management noted on the earnings release, "The demand outlook is currently unchanged and we have not encountered any push-outs or cancellations this year."

Furthermore, leading-edge semiconductors are now seen as a strategically important to both companies and countries alike. In fact, the U.S. Congress just announced a bipartisan bill to subsidize the semiconductor industry to the tune of $22.8 billion, as it aims to build semiconductor manufacturing capacity within the United States.

The building of additional, and perhaps redundant, semiconductor manufacturing plants in the U.S. would only mean additional demand for companies like ASML, and maybe especially ASML, since EUV is so crucial to the production of leading-edge semiconductors. So despite its strong run, ASML still looks like a strong pick to play these future technologies today.

If we're all stuck at home, streaming shows on our phones, ordering items on e-commerce websites, and accessing our work on cloud data centers, what do all of those things need? Servers, and lots of them. Super Micro Computer (NASDAQ:SMCI) makes servers for enterprise, cloud, and consumer customers all across the world. In contrast to the more standardized server offerings from Dell Technologies (NYSE:DELL) or HP Enterprise (NYSE:HPE), Super Micro makes more customized server solutions for specific end-use cases.

As servers become more important for different types of workloads, among artificial intelligence applications, 5G base stations, on-premises or cloud data centers and more, Super Micro could benefit. Also important, Super Micro actually does a fair amount of manufacturing in the U.S., which is somewhat rare, along with significant operations in Taiwan. Finally, as ESG concerns take hold of the corporate world, Super Micro's emphasis on environmentally friendly "green" computing should also resonate with customers going forward as well.

Of these three stocks, Super micro is the value stock of the bunch. Currently, it only trades at 16.5 times earnings, but that's even overrating the company's multiple. Super Micro has $301 million in cash versus just $33 million in debt, yielding $268 million in net cash, or 18.4% of Super Micro's market cap. In addition, Super Micro is still undertaking some extra costs related to remediating an accounting snafu from a few years ago, which has since been remedied. Should those costs fall off going forward and the company begins returning that excess cash to shareholders, and Super Micro is actually trading at something more like a low-teens multiple.

With COVID-19 still out there accelerating all of these digital trends, investors should look to buy stocks of companies that play to the digital future on these big market pullbacks. As such, CrowdStrike, ASML, and Super Micro Computer all look like solid additions to your portfolio today.

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It also announced its 10th deal 1894.50 crore by L Catterton, one of the worlds largest consumer focused private equity firms. L Catterton is built in a partnership with LVMH and Groupe Arnault. L Catterton will now have a 0.39% equity stake in Jio.

This takes Jios total investments to 104,326.95 crore from the likes of Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton since April 22, 2020.

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According to the company, TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds.

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Ambani is also counting on L Cattertons experience in creating consumer-centric businesses.

Over our more than 30 year history, we have established a track record of building many of the most important brands across all consumer categories and geographies, from retailers, omni-channel and digitally native brands. We are strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities," said Michael Chu, Global Co-CEO of L Catterton in a statement. Advertisement

The deal is set to be closed in the coming week.

Reliance Jio gets to pick between Google and Microsoft for the last tranche of investments, two sources in the know told Business Insider. The ball is in Reliances court they get to pick and choose. They will decide what is the best strategic fit for Reliance and will evaluate how smart the money is, said the source. Advertisement

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Reliance Jio lands its 9th and 10th investment 4,546.80 crore from TPG and 1,894.50 crore from LVMH-backed - Business Insider India

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