The pandemic has caused some severe market shocks. Apart from obvious long term damage to travel and entertainment one is seeing a number of second order effects too. The reversal of globalization: its dangerous to outsource everything from your country when supply chains are grid locked. Manufacturing locally especially will become a thing again. The damage to buy and sell sides: Markets crash really badly when both demand and supply shrink simultaneously Sharing is not smart in a pandemic: infectious and contagious means sharing falls off a cliff. Sorry Uber, Airbnb, bike and car sharing etc. The internet is a critical utility: Internet capacity is going to have to be dramatically increased and prices are going to have to crash Widening of wealth gaps: the only ways to survive are to reduce consumption, live from savings , increase debt, receive a public or private grant and to work remotely. For the poor this is a nightmare. Many Professionals can work from home. Very few lower income workers can. Dramatic increase in debt and reduction in savings: as countries and individuals strive for survival it’s clear that disposable income and discretionary spending will evaporate in the years ahead. There is some good news too. More on that later.
The pandemic and market shocks

Herman
- April 3, 2020
- , 1:16 pm
- , COVID19
Have you noticed the reversal of globalization and the pandemic?