During the second and third quarter of the year 2020, the COVID-19 pandemic has spread with alarming speed, infecting millions and bringing economic activity to a near-standstill as countries imposed tight restrictions on movement to halt the spread of the virus. As the health and human toll grows, the economic damage is already evident and represents the largest economic shock the world has experienced in decades.
While all will suffer from the “swift and massive shock of the coronavirus pandemic and shutdown measures,” some will suffer less and others more. Advanced economies, for example, are anticipated to shrink 7 percent; emerging and developing economies will shrink too, but only by 2.5 percent. This is even more stark when looking at the regional breakdowns.
In a situation like this, while at one end, economies are collapsing, some markets are recording growth at an unprecedented pace. Take for example the growth of eCommerce market, whereby the net worth of only a single entity i.e. Jeff Bezos, the founder of Amazon, grown by a few billion dollars. While total U.S. online sales reached $73.2 billion in June year over year, up 76.2% compared with $41.5 billion a year earlier, online spending is down 11.3% from May’s $82.5 million, Adobe Analytics reports. (Percentage changes may not align exactly with dollar figures due to rounding.)
Another market which has grown significantly is the blockchain, cryptocurrency and decentralized finance market, which has grown from which has growth from 151 Billion USD in March to 286 Billion Dollar as of July 2020. This shows the world is realizing the importance of online and virtual currencies.
Another market that has relatively performed well during the Covid-19 is the Forex market, whereby stock indices such as the S&P 500 and the Dow Jones Industrial Average have shown signs of optimism signaling ‘risk-on’ patterns, at which point traders sell dollars.
This is evidence that emotion, rather than reliable data, is driving these indicators. They are short-term gauges. It is unlikely current prices reflect the longer-term impact of mass unemployment, the risk of overleveraged corporate debt, restructuring in markets such as commercial real estate, or how government borrowing and spending will play out.
EIGEN FX, an online forex broker with over ten years’ of industry experience provides brokerage and advisory soluions to investors and traders, helping them grow their portfolio even in extra ordinary situation like Covid-19. Based on the belief that transparency and a direct approach is key to a win-win relationship, we are constantly expanding the scope of our services and product portfolio to encompass more asset classes and investing options.
The CEO and Founder of Eigen FX was quoted, “our approach towards how should we respond to the post-crisis era, we are planning to adopt a multi-phase approach whereby starting with, we are aiming to offer emphasis on providing portfolio companies with frequent, honest communication.”
“While communication with limited partners is a pressing need, it’s ultimately your portfolio companies that will deliver—or struggle with—financial and impact objectives. We believe that communication with portfolio companies should be a top priority for the upcoming times. We assure our investors that we would be “as flexible as possible” during this time, for our investors and users, I would like to say that “If you have an investment from one of us and think you may need support or flexibility, please get in touch, we will do our best to help. If you might need investment to help you through difficult trading, please speak to us.” he added.