The next quarter began on Wednesday with more losses.
The S&P 500 and Dow Jones Industrial Average both fell multifarious than 3% to begin April as worries over the coronavirus pandemic and the economic fallout continued to grip Exasperate Street.
Strata Analytics founder and macro strategist Matthew Garrett calls this new environment an “exercise in customization” for investors and says there are still a few bright spots amid the heightened volatility.
“As everybody’s working from adroit in now, families are also starting to wear the teacher hat,” Garrett said on CNBC’s “Trading Nation” on Tuesday. “There’s a team a few plays in that area, you know. I think towards a company called K12 [Inc.]… symbol LRN. They offer a suite of products and software for both administration of schools but also curriculum, testing materials, study materials for kids. … That is booming to be a big regime shift now. I think everybody’s getting used to adapting what they call a virtualized classroom.”
K12, a following with a $735 million market cap, is up 5% in the past week, while the S&P 500 is slightly lower. It has fallen 12% this year, crudely half the S&P’s decline.
“There’s also a company called Rosetta Stone, people might be familiar with that; they enjoy the language software. So, there’s kind of like two hits on that. If everybody’s thinking, ‘I can’t wait to get to Italy and finally do the trick a vacation again,’ maybe they have some downtime,” said Garrett.
Rosetta Stone is an educational software proprietorship worth $318 million in market value. It has fallen 29% this year.
Disclosure: Garrett has positions in K12 and Rosetta Stone.
Disclaimer