How Corona Virus changes our markets (with picture and charts)

[slapper]

As you can see, the world is facing one of the most dangerous diseases in the last 20 years. Covid-19 started from the market in Wuhan, China, and rapidly spread around the world in the next 4 months. Scientists and doctors are in the race to find the cure which can stop this disease from spreading wider. Some sources say nCoV is evolving which brings even stronger viruses. Well, in my opinion, the human is always the winner although the cost is expensive

Let's see how this pandemic impact the world in the past 4 months:

First, let's see how cryptocurrency moved:

- The last time bitcoin was below $6000 is May 9, 2019, and the last time bitcoin was below $4000 is 27 March 2019. This made many traders panic and start selling a lot of bitcoins. However, Bitcoin was only below $6000 for nearly a week. Whales and investors soon saw the opportunity and they start to put their money back into bitcoin which make the price climb to nearly $10000 in the next 3 months.

Source: OANDA chart from tradingview


Next, we move to Oil and Gold:


As the world becomes more trì trệ, Gold and Oil can not escape from the great sell-off. Gold dropped from $1700 to nearly $1450 in 6 days, which we have never seen in the last 5 years. This is proof that we are standing in the middle of the next big crisis. Oil has the same fate just like. The world doesn't need energy when many countries have quarantine. Since Vehicles and airplanes are forced to shut down their business, Oil decrease from $63 ( in December ) to less than $4 per tank. Some brokers even said that they witnessed oil futures price lower than $0. What a nightmare to all of us. However, Oil soon back to the race since China claimed that they had controlled the spread of the Virus, which helped the world a lot. They also provided masks, medical equipment, etc (some sources said that some of those masks are shitty and couldn't be used in the Western).


Source: currencycom chart from tradingview


Gold also suffered a huge drop. But as it is always a number one asset up to now, people buy gold as crazy as they are, and right now, it's creating a new high level. IMO, in the couples of years, Gold will soon cross $2000 which is the result of the economic resurrection


Source: FOREX.com chart from tradingview


The Forex market and stocks also had the same fate but right now I don't have too much time to create a new chart and upload it here with a few of my opinions. But they also perform really well at the moment in which I believe is the results of a powerful international economy

Conclusion:

So what is the point of everything? In my opinion, we were in the middle of one of the biggest crises of the century and due to that, many people have lost their money, their investment, their jobs as well as their business. However, the world we are living right now is stronger than before and that's why we are recovering so fast after a few months. The government and people around the Earth are working together to find a great solution to protect our home and the economy. Since our world becomes more developed and each part of the world becomes more integrating, we are building up everything again in the outstanding speed, which never happened before in the past. Maybe there will be another crisis in the future, or maybe COVID-19 will return and give us even more death and homeless people, but I do believe in humans and what we are doing to survive in this big big world. After everything, the human is always the survivor. One day, humans may destroy themselves with some silly weapon or destroying the ecosystem, but it's not today. Today we are strong and unite and we know our capabilities to make their world become a better place. Thus, after every crisis, people always witness a great movement in technology, economy, and living standard

If you are wondering how will this pandemic end, stop wasting your time and find something to do to improve your skills and knowledge, or at least find something to kill your time. What did I do during the quarantine? I watched stocks, cryptocurrencies, and played video games. In case you don't know, Workhorse stock has made a huge move from $3 to $13 in just 2 weeks

Best regards

[LeGaulois]

I don't need any chart to conclude we're in one of the biggest crises and contrary to what you say, I don't think it can be said at any point we're coming out of this stronger than before. We're not recovering everything, we're at the beginning of a terrible crisis.

Wait for September and you will see what I mean.  We will need several months to see the result and if the lockdown ended it doesn't mean everything is back to normal

Protecting the economy by printing money backed on debt? Are you sure it's something protecting?
If the economy is protected why are there several companies announcing either bankrupt or lay off thousands of people

[slapper]

If the economy is protected why are there several companies announcing either bankrupt or lay off thousands of people

Well, that's the cost. You can look at this either the good way or the bad way. The economy is a big picture and you can not judge it with a few people within. Just wait and see how the world will fight against this crisis. remember that after every crisis, the world always becomes a better place with new tech, new markets, and new ways of living. People always evolve, not in their physical body but in their mindset

According to Guardian:

"About 100,000 small businesses are projected to have permanently shut their doors since the coronavirus outbreak was declared in March, according to a new study from economists at the University of Illinois, Harvard University and the University of Chicago.[...] there are about 30.2m small businesses in the US, of which 5.9m actually have employees. So although 100,000 firms going out of business is a sad thing, it could be considered a relatively small number – 0.3% of all businesses, or less than 2% of all employer-owned firms"

[BIT-BENDER]

Don't forget that bitcoin halving to place in this period -pandemic- so it could have had some effect on bitcoin -as we know bitcoin may/can influence other crypto-coin-.
The corona virus had it cold hands printed on other sectors gold and oil -like you have said- oil was badly hit -below 1$/barrel- worst it has gone in a long time,

We are living in a world where we wait until problem gets too large -panic time- before looking for a way out, the pandemic started in 2019 but was giving low attention up until Early this year, not just pandemic the world is sitting on a land mine

.  Most countries are not prepared for a one year drought, let alone multi year.  Asteroid impact, Cat 6 hurricane, one in 10,000 year flooding, etc.

Fusion will solve all our problems.   With clean unlimited energy we have a chance to save our biosphere! 

Are we going to wait until the world becomes in habitable for life existence or are we to take the bull by its horn and acknowledge this problems and do something.


It's not only the pandemic reality that is the problem also the way we are going towards getting out of the pandemic

My opinions are subjective, and are based of a lack of medical training ( Pharma indoctrination ). Many years as a systems programmer have led me to question the origins an causes of problems, and I seem to apply this to many of my life experiences. For example, there is an obsession with chronological age, and many Pharma poisons are prescribed based on this, and not as a result of any health testing. Biological age is far more significant, and older people who have resisted vaccination and the use of drugs seem to be more resistant to the virus than many people who follow the standard American diet. However it is extremely to difficult to discover these research results. Similarly, all talk about coping with the virus are based on pumping large sums of monet into the Pharma industry, and not on research into natural remedies that have evolved over millions of years ot trials and testing.

One good thing about the virus is that it has generated a massive amount of research, but much of this is suppressed. For example, babies exposed to a wide range of infections develop a cross-viral immunity during the first year of life, and this cannot be established later in life. This ties in with evolutionary success, and it doesn't seem that it is limited to humans. The so called health system doesn't like this, and it wants people to have weakened immune systems that make them dependent on their poisons and artificially constructed immune system replacements.

The quote might be long but in it shows where we stand and where we could have been if there was selfless service. The world is becoming it's problem not virus -we have had AIDS, ebola, Lassa fever and more sickness might come- but how do we prepare for all this before they come? And how do we face it when it arrives?

[Rengga Jati]

It may be good if the fact is really suitable as the data on the chart. And if the facts suit to the reality around us. It may happen to the global condition, this may be because of the new normal?
Well, whatever the data, in fact, we can see what happens to the crisis and the people around us. In fact, although it is now in the new normal era (in my country), we are not getting back to normal. The lives are still limited to do everything, we can also still see how many people are struggling for life, not only from the virus but also from the starving, feeling bad of the debts, jobless, and much other crisis.

But yeah, I see the price of the gold is increasing and probably some others. However, it doesn't mean that the global crisis is ended. It probably still need several months to recover as normal.

[mu_enrico]

Looking at charts is one thing, and looking at real sectors is another thing.
The market can be leading or lagging, so there is no point in drawing a conclusion solely based on the market. And yes, the economy in developed countries is strong, but not in developing countries.

For example:

Finance Minister Sri Mulyani Indrawati recently projected that 1.89 million to 4.89 million Indonesians would become poor as a result of the pandemic, while 3 million to 5.23 million would lose their jobs.

On Tuesday, Van Doorn of the World Bank expected the country’s poverty rate to surge by 2.1 to 3.6 percentage points, which would mean between 5.6 million and 9.6 million people falling into poverty this year.

Source: https://www.thejakartapost.com/news/2020/06/02/indonesias-economy-may-shrink-3-5-if-psbb-last-for-4-months-world-bank.html

But, as long as countries can quickly reopen, the v-shaped recovery is possible. Perhaps the market bets on that scenario.

If you are wondering how will this pandemic end, stop wasting your time and find something to do to improve your skills and knowledge

Right, and find something that can earn us money (if possible).

[Gozie51]

Wait for September and you will see what I mean.  We will need several months to see the result and if the lockdown ended it doesn't mean everything is back to normal

About September, you are saying like there is expectation of worse to come but I was thinking it could be around the time that we expect some medical relief on the cure of covid-19. Some countries have been looking at that time to get their tasting ready on the fight for the disease.

[dothebeats]

The effects of this 'recovery plan' that some countries are undertaking right now are still not evident today. Even if we arrive at a working vaccine before the year ends--hopefully AstraZeneca delivers--the damage this pandemic has brought to the world is still huge that it might even take year or two before things get back to what it once was prior to the events of March 2020. Currently, countries with strong economies are already struggling to make ends meet, and developing countries are employing band-aid solutions in the mean time to hold their economies together. A sudden reopening of these countries might bring a short relief to their economic woes, but I doubt that it would be enough to escape the gravity of the situation.

[slapper]

The effects of this 'recovery plan' that some countries are undertaking right now are still not evident today. Even if we arrive at a working vaccine before the year ends--hopefully AstraZeneca delivers--the damage this pandemic has brought to the world is still huge that it might even take year or two before things get back to what it once was prior to the events of March 2020. Currently, countries with strong economies are already struggling to make ends meet, and developing countries are employing band-aid solutions in the mean time to hold their economies together. A sudden reopening of these countries might bring a short relief to their economic woes, but I doubt that it would be enough to escape the gravity of the situation.

I agree with you. However, we are living in the integrating world in which country connects to other countries and they know their responsibility to help others. Moreover, high technologies and 4.0 revolution are developing really fast and that gives people chances to work without going outside of their houses. Although the recovery might be slow, I believe the world will be stronger after this event.

[amishmanish]

According to some analysts, the stock rallies may also be due to liquidity infusion. What i see is that the changed world will be a lot different than the one we are used to. People's perception regarding their needs and wants will also change. What is success when you cannot enjoy it with a bunch of your friends and go on a holiday. Almost all hospitality services and tourism related industries still have to go through a hard time only to bounce back very strongly once a vaccine comes out. People who will see their kin and acquaintance suffer will go through a change of mind.

Sometimes it is hard to imagine that the governments are not misusing this as an opportunity to attune people into conforming behavior. Neo-liberal governments the world over are going to use this as an opportunity to lower wages while selling off public investments in the name of "recovery" and "better growth". In the face of pandemic, vulnerability of the most powerful country compared with much better performance by China, is setting stage for another cold-war. Vaccine production will also ensure that China grabs a huge part of that market as they supply a lot of raw material for pharma companies. Recovery or no recovery, we are going to see a much less democratic world for sometime.

[so98nn]

As you can see, the world is facing one of the most dangerous diseases in the last 20 years. Covid-19 started from the market in Wuhan, China, and rapidly spread around the world in the next 4 months. Scientists and doctors are in the race to find the cure which can stop this disease from spreading wider. Some sources say nCoV is evolving which brings even stronger viruses. Well, in my opinion, the human is always the winner although the cost is expensive

I would like to share more terrifying insights regarding covid-19 since I work in vaccine industry and watching the vaccine development very closely. The results are pretty good and oxford technology which was recently developed is underway.

However, what we have observed through animal testing is this:

The covid-19 is mutating at very faster rate thus causing conflicts in antibodies ^{(first line of defence in body)}. This is making things very complicated for vaccines. We had numerous trials which lasted for only 45 days and one assured vaccine whose effect is gonna be there only for 90 days max!

What this mean?

Well, you will have to have a booster dose again and again to avoid covid-19 infection in your body thus making it costly treatment. We are investing huge amount of money to develop lifelong vaccine but there are more failures than success. If there comes no solution to this then all countries may just end up putting their money into corona vaccine development and also governments will have to invest huge money to treat patients in their campaigns.

No judgements but worst is yet to come!


This is ultimately gonna hamper all the charts above even more brutally if situation persists this way for long. Terrifying isn't it!

[LeGaulois]

If the economy is protected why are there several companies announcing either bankrupt or lay off thousands of people

Well, that's the cost. You can look at this either the good way or the bad way. The economy is a big picture and you can not judge it with a few people within. Just wait and see how the world will fight against this crisis. remember that after every crisis, the world always becomes a better place with new tech, new markets, and new ways of living. People always evolve, not in their physical body but in their mindset

According to Guardian:

"About 100,000 small businesses are projected to have permanently shut their doors since the coronavirus outbreak was declared in March, according to a new study from economists at the University of Illinois, Harvard University and the University of Chicago.[...] there are about 30.2m small businesses in the US, of which 5.9m actually have employees. So although 100,000 firms going out of business is a sad thing, it could be considered a relatively small number – 0.3% of all businesses, or less than 2% of all employer-owned firms"

Yes, sure the cost as you say. The cost at the expense of citizens but for the benefit of businesses. The same companies that received billions in state aid recently and a week later announce massive layoffs, despite the fact that the benefits are still there for some, even increasing compared to 2019.
How crazy is that economic policy? So it's like saying, the government takes your money to give it to companies and once they got your money they fire people.

What a wonderful state

Where will all this money come from, but above all who will have to pay? It's still us the citizens, when governments will have no choice but to raise taxes. Of course, that will not happen soon, probably in two or three years, I don't know. For example, in the USA, they are not crazy enough to raise taxes in the run-up to the presidential elections. It will be done afterward to avoid that the people turn away from a positive vote...

I know in Europe they are thinking about a new tax for GAFA and also to tax polluting countries on their imports such as China for example. What's going to happen? Some products will increase, China is not going to bother with that. Who will pay for this increase? Us, again.

The global economy prepares for the worst recession, with more than 10% for some countries, To compare in 2008-2009, the world recession considered the worst was 0.1% (if I'm correct on the numbers).

[slapper]

If the economy is protected why are there several companies announcing either bankrupt or lay off thousands of people

Well, that's the cost. You can look at this either the good way or the bad way. The economy is a big picture and you can not judge it with a few people within. Just wait and see how the world will fight against this crisis. remember that after every crisis, the world always becomes a better place with new tech, new markets, and new ways of living. People always evolve, not in their physical body but in their mindset

According to Guardian:

"About 100,000 small businesses are projected to have permanently shut their doors since the coronavirus outbreak was declared in March, according to a new study from economists at the University of Illinois, Harvard University and the University of Chicago.[...] there are about 30.2m small businesses in the US, of which 5.9m actually have employees. So although 100,000 firms going out of business is a sad thing, it could be considered a relatively small number – 0.3% of all businesses, or less than 2% of all employer-owned firms"

...

Well, since I don't live in the USA, I can not make a fair judgment about the situation in this country. We have to agree to disagree after all. Tax is really an annoying problem which can make people against their country. One day, I might become a USA resident and then, I can make a full statement of what is going on around here

In my country, people are currently happy with their life although the government does a lot of bad things. They only care about themselves and their family and at some point, they believe in the government. And during the Covid-19, the government has done really well to protect the people and the economy. At the moment, most of the companies are running back their businesses. Therefore I believe there will be no protest in the next couples of years about the tax or human rights (ironic that my country prohibits protest lol)

[davis196]

Gold also suffered a huge drop. But as it is always a number one asset up to now, people buy gold as crazy as they are, and right now, it's creating a new high level. IMO, in the couples of years, Gold will soon cross $2000 which is the result of the economic resurrection

Gold price isn't increasing because of some economic resurrection.The gold price is going up because of:
1.The stimulus plans and money printing by the central banks around the world.
2.The belief in investors and traders that gold is a safe heaven.
The global economy will continue going down.Gold and Bitcoin might become safe heavens for the investors,but the possibility of Gold and Bitcoin prices crashing again is still there.

By the way,I think that your title is wrong.The coronavirus isn't "changing" the markets.
The way markets reacted to such global shock was pretty normal.

[wozzek23]

Yes I noticed that gold has been growing lately and even reached a high price that is above what it used to be, even in the last quarter  . This is happening after the Covid-19 effect. Despite all that happened, it still seems to be going strong. Currently we are trading above $9200 levels which must be a good sign for reaching new ATH by considering how world economic is performing and how world pandemic is negatively impacting all other markets

This is what I’m really expecting from cryptocurrency, for the price to increase and reach another all-time high price and gain more attention from investors and institutions around the world. Imagine that BTC should hit that next all-time high price, a lot of people will start becoming interested and this will be the final proof that BTC is one of the best assets to invest in. And those that doubted it will start regretting why they did.

[exstasie]

So what is the point of everything? In my opinion, we were in the middle of one of the biggest crises of the century and due to that, many people have lost their money, their investment, their jobs as well as their business. However, the world we are living right now is stronger than before and that's why we are recovering so fast after a few months.

We aren't out of the woods yet. Remember, the 2007-2008 crisis took a year or so to unfold. We're only a few months in. There is still so much uncertainty ahead. Businesses failures and defaults and resulting banking contagion can take many months to materialize, especially given that unprecedented amounts of stimulus cash and QE was just pumped into businesses, keeping them afloat. Whether that serves as a band-aid that eventually fails or a sustainable solution that keeps the economy robust remains to be seen.

Jobs numbers are still abysmal. Until unemployment is at least below 10% it's hard to see what all the excitement is about.

[Freeesta]

I agree that now is the right time to find something interesting for yourself. Some business that will generate income in the future. But not just making a profit, you need to like this business. Now the economy is in a deep crisis. Perhaps in the near future the situation will begin to change for the better. I would advise you to study a better world of cryptocurrency and maybe this is our salvation after the pandemic.

[LeGaulois]

...

...

...

I took the USA as an example since the elections are coming soon, so the example is more obvious. I could have taken my country too (or another) knowing that the elections are coming in 1-2 years.
What I meant to say is that the argument is valid for any country where the president would seek to be elected again.

I don't know in which you live but, what did your government do especially for the economy? Certainly like many other countries where the central bank has (still) printed banknotes. But you will have to pay this money since it doesn't come out of the sky. How is your government going to do it? Raise taxes, reduce subsidies, which means that your citizens will have less aid, less purchasing power, etc.

The middle class is really going to suffer. It's a matter of weeks. I'm a total idiot by the way, I should have bought more gold, the good news is I can only blame myself.

As @extasie say, we can't see the results immediately, personally I think we will have to wait maybe 2 or 3 years to make our own opinion.

Also, I don't know what you mean when you say that the world is "joining together", using new technologies (which tech do you think about?).
On the contrary, countries are "fighting" each other. Between some countries that steal masks from each other was a very good example. Or in Europe, where countries are fighting over who will pay for the masks. (great European Union by the way)

[oHnK]

As you can see, the world is facing one of the most dangerous diseases in the last 20 years. Covid-19 started from the market in Wuhan, China, and rapidly spread around the world in the next 4 months. Scientists and doctors are in the race to find the cure which can stop this disease from spreading wider. Some sources say nCoV is evolving which brings even stronger viruses. Well, in my opinion, the human is always the winner although the cost is expensive

Let's see how this pandemic impact the world in the past 4 months:

We have the same hope for the world's economy. We want the world's economic condition will be better in the next months. What we can do is improve ourselves. Increase our knowledge and skills is the best way to face this pandemic. In this pandemic era, every side in this world gets the effect of this pandemic especially the economic side. Only the survivor can survive in this new challenge so prepare our selves and improve our skills and knowledge as fast as possible.

[crwth]

The need for money affected everyone. As the price of stocks and cryptocurrencies plummeted, there are probably a lot of people who sold everything for the emergency lockdown for the supplies, etc. When everything settled down, and people started to invest in it again, so technically, we have nothing to worry about.

Even when you checked the old stock charts from before, when the stock market crash happened too, the market came back even more durable. It's not always going to be positive with the market, and there should be ups and downs as well. There seems to be stuff that happens during those times, significant events for sure.