Panic. Coronavirus. The big pandemic. Touring musicians are struggling. Art exhibitions are canceled. Covid-19 is causing tidal waves of terror. Everything is shut down. Amusement parks are empty. The apocalypse is near. Is that really the whole picture?
Some businesses are still making good money, even during a crisis like right now. There is an obvious demand for toilet paper and disinfectant and face masks and of course soap. These items seem to be the quick fix and companies providing that are profitable. Pizza delivery is thriving, while Italian restaurants are out of business. Bookshops are closed, but you can easily buy any e-book. Which demonstrates that not everyone has the same problems right now.
But there is something else to be noticed: Poor people are hording toilet paper and rich people are on the hunt for stocks. It´s true, investors are actually waiting for financial crashs like this. It is the perfect opportunity to invest in the stock market, because profits are made by purchasing while the price is low. A good time to optimize a stock portfolio, because index funds are super cheap. As harsh as this sounds, from a business standpoint it is nothing extraordinary: Buy during a crash.
We are all obediently accepting that, simultaneously on the other end of the spectrum, a lot of people are making big sacrifices and struggling to get by. Because we think that´s just how it is. That´s economy, some are going to lose and some are going to make profit. A brutal system, that we all have agreed on and we are supporting with our decisions and purchases.
So, who is going to be the big winner in this game? Fast-forward. Let´s see which pharma company is going to win the race and is coming up first with a vaccine for the virus. They are going to make a fortune, because in this pressured situation all the affected states are forced to buy any cure available at any price.
That´s economy. That´s supply and demand. Emotionless.
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