30 Coronavirus Impacts (Feb 2020)

Feb 28th historical post thinking about impacts

Random Observation/Comment #649: Time to accelerate my learning of 30 Survival Skills…

Time to be nice from afar

Why this List?

The impact of any wide-spreading disease like the coronavirus often takes a few months to settle. Different factors recently contributed from either media sensationalism or fake news has led to a fairly major panic within the global economy and stock market. We were all expecting some type of recession to occur since the trade war + Brexit + a whole list of 30 global worries.

Cryptocurrencies might be a safe haven since it’s less connected to the financial markets, but honestly, everything is connected so I wouldn’t put all my eggs in one basket. If you’re looking for cryptocurrency exposure, there’s a list of 30 for that too.

Here are some ideas of how lives of individuals and businesses can be impacted directly and indirectly. These are in no particular order, but you can trace my thoughts and assumptions.

1. Consumers will be reluctant to travel internationally –> Bad for airport related businesses – Airlines

2. Consumers will be reluctant to take international vacations –> Bad for tourism industry

3. White-collar labor may be working more from home –> Good for work-from-home companies like Zoom and Slack.

4. Consumers will be less likely to join large congregations / gatherings –> Bad for retail

5. Consumers will be less likely to eat at restaurants –> Good for restaurant delivery services

6. Consumers will be more wary of food origins and maybe even more vegetarian-based meals –> Bad for meat products; Good for fake meat products depending on transparency of process

7. Fewer consumers will go to malls and shop in-person –> Good for online shopping

8. Fewer consumers will attend sporting events or concerts –> Bad for businesses related to arenas; Good for Virtual Reality (VR) participation?

9. Fewer consumers will go to the gym –> Good for workout from home companies like Peleton

10. Consumers may be less likely to use public transportation –> Bad for government funding of public transportation

11. Consumers more likely to attend outdoor activities –> Good for hiking

12. Businesses may ban travel to meetings –> Good for teleconferencing

13. Businesses may reduce budget for flights (specifically first class tickets) –> Very bad for airlines

14. Businesses may cancel conferences –> Bad for marketing events and jobs related to conference coordination; Bad for start-ups looking to raise money and leverage events for gaining business contacts

15. Businesses that create goods that have physical parts made from China will have a slippage in manufacturing dates –> Bad for companies that rely on parts made in China

16. Businesses that interact with China at all –> Bad compounded from companies already impacted by Trade war

17. Businesses may reallocate their budgets and reduce R&D –> Bad for Innovation and Emerging tech groups

18. Stocks may plummet +20% –> Bad for individual retirement funds; Bad for investments; Maybe good for lower-middle class to time the market and reinvest post market correction

19. Robo investment platforms may have no good choices to make –> Bad for investors

20. Businesses may reduce pay of bonuses which reduces investments into the market as savings –> Maybe Bad for market in a cyclical way

21. VCs may reduce their allocations –> Bad for start-ups that are looking to raise money on their new ideas

22. Political candidates may write policies that have second or third order effects –> Maybe Good for Democratic candidates that push broader healthcare measures

23. Governments likely to put more funding into healthcare and pharmaceutical companies –> Good for pharma (if they figure out how to distribute it)

24. Consumers may consume more alcohol and marijuana –> Standard recession impact is Good for alcohol, tobacco, and firearms

25. Consumers may buy more products that have a longer shelf life –> Good for canned goods industry

26. Consumers likely to buy more cleaning products –> Stores fined for price gauging, but likely higher demand for making cleaning products are good for Johnson&Johnson like companies

27. Consumers more likely to want to learn about survival lessons –> Good for businesses teaching survival techniques

28. Consumers probably want to buy better home chairs since they’re working from home more –> Good for furniture stores

29. Consumers watching more TV at home –> Good for media streaming services like Netflix

30. Alternative investments and money safe havens may saturate –> This is good for Bitcoin.

~See Lemons Bunker Up