Learn How to Overcome the Coronavirus-Induced Global Recession
It seems these days is inevitable to find to keep reading about the latest pandemic taking the world by surprise and wreaking in several countries already.
Yes, we’re talking about COVID-19 or as is widely known, Coronavirus. A virus that typically affect the respiratory tracts of birds and mammals, and has recently mutated to infect humans.
And yet, there are some not so obvious symptoms, since you see, Coronavirus hasn’t mutated to affect just humans. This pandemic is infecting the world in some surprising ways by unsettling supply chains, sapping sales of many products, throwing travel into chaos, freaking out the stock markets, and intensifying fears of a global recession.
Is the economic fallout for stock markets deep, lasting, or widespread?
The simple answer is yes.
In fact, coronavirus has erased $3.18 trillion in market value from U.S. stocks just this first week of march.
S&P Dow Jones Indices alone lost $203 billion in value on February 28. On this first week a $2.997 trillion loss from Monday to Thursday has been registered
The S&P 500 index has lost $3.58 trillion in value from its February high. The stocks dived again since investors are moving away from several assets amid panic of a dip in global growth caused by the virus. All the major average ended last week deep in correction, by over 10% off their most recent highs.
The waves have been felt throughout the markets and many big companies like Mastercard, Nike, United Airlines and Apple are already warning investors about the virus’ impact on their profits.
The reality is simple, a still-escalating coronavirus outbreak continues to fuel investor concerns as New York’s coronavirus cases have virtually doubled from the night of March 4 till morning and California declared a state of emergency, following the announcement of the state’s first confirmed death as a result of the disease and resulting in shares of American Airlines to go down more than 7% just after the opening bell, United Airlines’ stock went below 6%, and shares of Delta Airlines were off about 4.5%.
Stock futures has sunk after California’s state of emergency too and volatility keeps extending for risk assets.
Coronavirus hasn’t affected just stocks and shares
It’s becoming a potential threat to the global economy as it goes on longer. Supply chains can deal with interruptions for a few weeks, relying on previously stored supplies. But if it continues past that, there will be significant widespread problems.
Also, oil is dipping and banking giants have been hit as well by Coronavirus.
JPMorgan has placed emergency risk management measures in London as their sales and trading staff will be split between different offices.
OPEC is proposing a large production cut moved by coronavirus-hit demand. A curb measure aimed at rising prices that many are seeing as “too little, too late” and several countries consider too extreme.
A cut that, even if ratified, will imply a smaller effective output reduction given the historical pattern of cuts falling short of quotas, and the increasingly disappointing global demand plus weak growth momentum pre-virus.
Portfolio global exposure, diversification and risk aversion are the way to go
Reviewing your portfolio’s asset mix to:
• Ensure they’re effectively positioned to benefit from growth opportunities around the globe
• Take advantage of current and emergent market trends
• Avoid relying solely on the strength of a single country’s commodity markets
Will have to become the norm if you mean to overcome this virus-fueled recession.
Moving asset allocation beyond domestic stocks, securities and fiat currencies and into global diversification, equities, fixed income and non-traditional investments will be the investment strategies that will grant endurance over this already very chaotic 2020.
• Cash-flow needs’ analysis
• Risk aversion goals
• And investment time horizon
Will focus your allocations periodical re-evaluation to overcome changes in a market or surmount any given asset’s circumstances.
Is there any short-term solution?
The indisputable truth that 2020 and Coronavirus will leave to the investing world is that now is the time to embrace disruptive assets in emergent markets. This type of avenues has always performed well against recessions and with Coronavirus won’t be different.
If they’re successful enough- they have a tendency to reach global adoption which makes them an incredible tool against any portfolio’s correlation potential.
Companies with a great ROI projection that has scalable business models for a large enough target market, will be the type of assets that will carry many portfolio’s afloat while Coronavirus is being surmounted.
The ones on a technology-related sector or that show disruptive business models, since these have a bigger chance to grow and provide investors with the type of returns that they are looking for.
And the ones that are positioned on a market that’s on the rise grants you more growth potential, which ultimately leads you to exponentially higher returns, portfolio diversification and protection against correlation.
Right now, it looks like FinTech companies are on the rise for the sheer fact that the new developing tools they’re creating for investing work outside of the current markets.
There is an opportunity in the Fintech sector that truly circumvent all the hurdles that this Coronavirus pandemic and its ensuing recession represents for investors.
A new form of stock-like liquid tradeable instrument that expands the investor’s reach beyond currently localized markets. Help them leave behind language barriers, international fees, or currency conversions so they can acquire the investments they want and move on to the next opportunity.
Now… if you’ve made it this far it’s because you’re looking for something different and effective to make your portfolio’s risk aversion grow.
This is an avenue that also have the following features:
• Calculated risk.
• A clear exit strategy.
• A trillion-dollar market
• And yearly dividends
This is a serious chance to get on the ground-floor of an ambitious, solid, visionary and profitable project that will change the status quo of how finances and investing are done…
And you can find out more about this fintech holding here!