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Look for the Silver Lining

Amidst the recent market volatility and proof that the virus is still gaining momentum globally, I cannot stress enough the need, now more than ever, to think logically, stop panicking, and just be human. Let's be considerate, practice proper hygiene, stay away from public gatherings if you can help it, and protect yourself and others by listening to the CDC/WHO/state government officials.


We will eventually have a healthcare solution for this horrible virus. It may not be today or the next 2 months, but if the experts are correct, hopefully within the next 9 - 12 months. Albeit the current U.S. political landscape seem to be divided on how to tackle this pandemic, I see great leadership from certain state government officials. Healthcare workers should also be commended; they are providing the best possible care for everyone considering the increasing lack of medical supplies and staff. I cannot list all of the great things companies and certain individuals are doing to help during this pandemic, but due to my personal connection to certain people from the fashion industry, I would also like to shine light to the good they are doing to help the general population.


As for the current market disruption we are all facing, here are my thoughts:

The market crash of 2008 and the 'Great Recession' of 2007 - 2009 taught us that even in the face of extreme wealth destruction, there are always going to be winners - a silver lining. Biotechnology companies and discount retailers, most specifically, benefited during those times. It is also during those times that investors could clearly see which companies have positioned themselves strong enough to withstand a bad economic backlash. For instance, coronavirus' implication to the supply chain. Let's look at Apple. Due to the coronavirus, Apple's supply chain is greatly impacted since the majority of their factories are based in China. There are also concerns on the electronic supply chains coming from Japan and South Korea since those countries are also battling a coronavirus outbreak. Even if Apple found a way to resume regular production, there's the looming fact that people will not be too keen on spending any time soon due to market volatility. There are also individuals who are quarantined and some unable to work.


Apple leveraged itself as a premium product and remains in a good position. As of writing this blog, 20200318, AAPL's stock price last year from today's date was at $185.59; they opened today at $239.38, and as of 17:00, soared to $246.99.


Another company that's doing well is Wal-Mart. They profited during the recession and is one of the companies profiting in today's turbulent economic landscape. That's hardly a surprise; everyone need affordable groceries, basic necessities, and medicine.


To emphasize my point, always look for the silver lining in every situation; have the foresight to turn a bad situation to a good one. To repeat myself (and those close to me knows how much I dislike repeating myself), the best thing we can do right now is to think logically, stop panicking, and just be human - be considerate and practice empathy. I promise, we will get through this together. Stay safe, everyone.


- Faye aka eklypse

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