Investors worried about a severe U.S. swine flu outbreak this fall should consider stocks that rise when people hunker down at home and avoid companies that operate in crowded spaces.

That might mean selling shares in airline, hotel and cruise companies as well as mall-based stores that sell discretionary items. Buys may include healthcare stocks, online retailers and companies that provide entertainment and in-home comfort food.

Retail and leisure analysts did not believe the spread of H1N1 will be as dire as some health experts suggest. They also said people could quickly adapt to living with the threat of flu, particularly if the virus does not become more lethal.

Still, a severe outbreak could set back the nascent economic recovery and trigger an overall sell-off in the U.S. stock market, analysts said.

“Most folks would agree that we’re on a path to recovery,” said Deutsche Bank analyst Chris Woronka. “(A flu outbreak) obviously makes the road to recovery even more difficult.”

Source/Full Story: Reuters

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