While cautious about a second wave of COVID-19 cases in the U.S., industry experts see some bright spots for institutions in search of investment opportunities in the second half of the year.
Stock picks in industries searching for innovative solutions to pandemic-related concerns could pay off, as well as bets on parts of the real estate market.
Still, it's important to keep in mind the current environment is one with "so many unknowns," said Allan Emkin, a Portland, Ore.-based managing principal and consultant at Meketa Investment Group.
"If this was a credit dislocation or overvaluation of stocks, we'd have a frame of reference and policymakers would know how to address that. But we don't have that. And the financial markets will be driven by what happens with biology," Mr. Emkin said.
Despite the market uncertainty, Mr. Emkin sees areas of opportunity in sectors such as biotechnology and pharmaceuticals, along with other industries where business models are being designed to "reflect the concerns that people may have as a result of COVID-19."
For example, "there will be enormous amounts of money, both institutional and non-institutional," allocated to companies or sectors that are trying to find therapies and vaccines for the coronavirus, Mr. Emkin said.