The current economic crisis caused by covid-19 is quite different from previous recessions and financial downturns.
Previously, governments could just inject money into the economy or invest in capital infrastructure to stir demand. However, Clovid-19 hit demand so hard that we don’t know when or whether demand will turn around. In addition, demand may return in a totally different form.
So we have a situation where we cannot just bargain hunt on blue-chip companies in a bear market and expect them to turn around. Some of them may not. Instead, we have to carefully study now demand will change post covid-19 and pick companies and industries that will shape the new economy.