The global economy & the pandemic Benjamin Gordon Palm Beach
Benjamin Gordon of Palm Beach when 2020 started, most investors expected that the 11-year bull year would carry on. No one realized that COVID-19 would change the entire game plan of the economy. Through several lockdowns and also social distancing norms, brands and investors have learned that it will take time for the economy to bounce back to where it was. The only respite for companies is to keep floating and work in smart ways to ensure that the economy is evolving.
Benjamin Gordon Palm Beach on COVID-19 and the world economy
The World Health Organization has officially called COVID-19, a pandemic that has infected countless people worldwide. On April 1st, 2020, there were almost 900,000 cases of COVID-19, and also the death toll was close to 44,000. Today, the count has increased manifold. However, the unprecedented quarantine by China of 600 million people in hospitals or homes had halted the outbreak to an extent. According to Benjamin Gordon Palm Beach, the pandemic’s impact on the global economy and market has been varied and adverse.
Benjamin Gordon Palm Beach The impact
People in America, the government, and Wall Street wants to witness the virus getting defeated. Till such time that happens, the risk assets are vulnerable to the extra sell-offs. But there is a bright side as well. The outbreak has maximized the demand for medical products, such as test kits and medical masks to ward off the virus. The other risk assets are the earnings weaknesses that occurred in the first half of 2020. For instance, the brand Nike depends excessively on China for production. And also today, there is a fear of a decline in earnings because of supply-chain disruptions. Similarly, even Starbucks had to close down 4,292 stores in China. Also, Apple was searching for an alternative supplier to help to compensate for the production losses.
Several people are in a state of quarantine now, and also the rate of infections is also increasing. The medical experts are trying to come up with a vaccine. The U.S might have to witness more economic challenges as there is a reduction in economic activity.
Benjamin Gordon Palm Beach The marketing events and trade shows
Currently, most business conferences and also trade shows are getting postponed. For instance, in Chicago, The Inspired Home Show that pulls in as many as 60,000 attendees globally has also got delayed. Several business people are putting their business travel and tours on hold, until necessary. Even United Airlines took a bold step of canceling almost 10% of all the domestic and 20% international flights. As a result, the airfare price has increased manifold.
The future
It is necessary to ponder what the current situation indicates for the investors? Here it has become essential to say yes to policies that can leverage volatility. The market currently shifted from a high record to the correction zone within a week and also then went up to 4.2% within a day. No one can certainly predict the future, and the pandemic’s impact has brought in excess uncertainty. Hence, in such situations, when one can expect ongoing volatility, it is wise to count on strategies that improve returns, irrespective of the market fluctuations.