Corona Virus opportunities?
Thanks to Coronavirus, we cannot go to grab a drink or eat in our favorite restaurant, so we decided a few friends to drink a bottle of Whisky in our UK office. Some trading screens constantly scanning the market for opportunities and two TV screens on Twitter of Trump and Fox News. The market wants to call this a panic event, we however refuse to accept this title because it does no longer relates to this anymore, the real title for this market should be called OPPORTUNITY.
The most perfect explanation of a Black Swan would be something non planned which causes non planned action of a premeditated process. We have seen before a few months back the hacking and stealing of Crypto from the biggest exchange Binance, that was certainly a black swan event. No matter what the market shifts can not be characterised as such , because its many events which keeps on unfolding and impacts are unknown.
The main reason why I called Coronavirus an OPPORTUNITY back is because the price which equities worldwide were trading at were not logical,right? The politics of Mr. Trump have impacted many of the investors to dump their assets and be on track to invest in growth large companies, when tax cut happened we saw money pumping into Crypto with the US economy , this together with almost non existent interest rates, was pushing the price of stocks to ATH, then what happened? CORONA Virus brought again THE KING, CASH!
When we see constantly how big economies try to inject more liquidity and pump hysterical amount of money into the markets, the big question right now is how much further? Will we see extreme devaluation of paper currency to defuse the impact? When all this will be over what will be the result? Will humanity emerge as the true winner against Corona? The consequences of the reckless monetary supply will show its way. Lets all hope for the best and for this to be over as fast as possible.