Shifts in how people consume, shop and travel due to COVID-19 could benefit small cap companies, says one market expert.

“It’s been the small caps that actually outperformed percentage wise last week, and a big part of the reason is that there are a bunch of stocks in that area that are really, I think going to be the ones to look at as we see this seismic shift that’s happened because of the pandemic,” says Michele Schneider, MarketGauge director of trading education and research, told Yahoo Finance.

Schneider says small cap companies with strong earnings and good financials can “fill the void” in a behavioral shift that’s happening as a result of the coronavirus outbreak.

“Which would be where the change is in technology, where the change is in everything that we do,” said Schneider. “How we consume, how we shop, how we go to restaurants, go to the movies, how we travel.”

“Some of the classic stocks like Amazon (AMZN), Apple (AAPL), Google (GOOGL), Facebook (FB), et cetera, they’re kind of almost pre-historic in a way in that they are saturated mathematically. You wonder how much more they have to go,” she added.

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Schneider is also bullish on silver [SI=F], gold [GC=F] and other commodities, given the risk of stagflation in the future.

“We haven’t quite gotten there yet [stagflation], but I do believe very strongly that that’s a distinct possibility going forward,” said Schneider. “I’m looking at it more end of this year, maybe into 2021. We already started accumulating positions for that.”

Stagflation is commonly defined as persistent high inflation along with high unemployment and a stagnant economy. The term became popular in the U.S. during the 1970s when oil prices surged during rampant inflation and high unemployment.

Schneider notes similarities between both periods, with the exception of oil prices.

“I do believe that we’re in a situation where we can keep the recessionary environment, and see these agriculturals — we’re already seeing reflected a bit in gold and the miners — start going up,” said Schneider.

Gold exchange-traded funds have attracted $14.5 billion in less than five months, according to Bloomberg data. The 2020 inflows into ETF’s tracking gold surpass any full year on record, even as stocks have rallied since their March 52-week lows.

Ines covers the U.S. stock market from the floor of the New York Exchange. Follow her on Twitter at @ines_ferre

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