how to benefit in times of crises - COVID-19 - Corona

[ricomendez]

Hey

I am a an under 30yoguy and I'm new in this forum.

I'd like to learn how to profit in times of crises.

First of all: I never want to profit from pain/e.g. of other living beings.

But i think these periods are more easy to anticipate than "normal periods of time"

Are there any people who have already experienced times like this?
Are there any advices what to do with our assets?

I'd be happy about some constructive replies

 

[Marie Manila]

Take a short-contract on Dow Jones and hold it for some days.

Have a look at CFD trading (Contracts for difference) if you would like to go short the easy way.

 

[Gediminas]

You could definitely invest now in the food delivery business. It's gonna be on the peak for sure! At least for a month or so.

 

[gladiator1357]

You could definitely invest now in the food delivery business. It's gonna be on the peak for sure! At least for a month or so.

Seems a good idea.
How can I do it ?

 

[Gediminas]

Seems a good idea.
How can I do it ?

Figure it out, man. It's a simple business. Also, you could move to the gambling industry:

 

[gladiator1357]

Thanks for your reply, I think I'll go with gambling

 

[Martin Everson]

Also, you could move to the gambling industry:

Dude that pics messed up...lol . Made my day.

 

[exprtadvisrdev]

Also, you could move to the gambling industry:

Best picture I have seen today... Sometimes I think why the hell I didn't come with those kind of ideas first

About the post, do you think dollar cost averaging in the US market is good at this moment?

 

[Martin Everson]

Are there any people who have already experienced times like this?
Are there any advices what to do with our assets?

Yes and I went straight to cash with all my assets. Gold can go into bubble but cash does not.

If your adventurous with people likely to be stuck at home quarantined maybe consider buying companies like Amazon as more people shift to buying online. Maybe even Netflix as people stay home longer. The virus is not going to be long lived I hope so not long term investments. Just stratgeic investments until next financial earning reports of these companies and sell off and take any profit.

 

[ricomendez]

Thank you very much for all of your answers.

I will let you know what i will do and if it went well, haha.

 

[iloveyouguys]

You are kinda late to monetize the virus but you can bet against the companies/countries

@Martin Everson what do you think will happen to USD?

 

[Martin Everson]

@Martin Everson what do you think will happen to USD?

I don't touch dollars. I hope USD will disappear and the US will realize they now have to compete fairly on an even football pitch .

What happens with USD is down to the FEDs actions alone in reality.

 

[iloveyouguys]

I don't touch dollars. I hope USD will disappear and the US will realize they now have to compete fairly on an even football pitch .

What happens with USD is down to the FEDs actions alone in reality.

Why would FED f**k up?

 

[Milky Moon]

Because of the 2007/2008 Lehman crash there was shortage in dollars for the global national banks, the Fed printed dollars and lend them to these Countries. This needs to be paied back so we now have a massive dollar margin call, there is now - in JPMorgan's calculations - a global dollar short that has doubled since the financial crisis and was $12 trillion as of this moment, some 60% of US GDP.

 

[iloveyouguys]

Because of the 2007/2008 Lehman crash there was shortage in dollars for the global national banks, the Fed printed dollars and lend them to these Countries. This needs to be paied back so we now have a massive dollar margin call, there is now - in JPMorgan's calculations - a global dollar short that has doubled since the financial crisis and was $12 trillion as of this moment, some 60% of US GDP.

Just print more money and give it to institutions and problem solved

 

[KJK]

I don't touch dollars. I hope USD will disappear and the US will realize they now have to compete fairly on an even football pitch .

What happens with USD is down to the FEDs actions alone in reality.

If you're holding Euros (I think you mentioned that earlier), I can just tell you that I'm European and if I think there will be a last fiat currency remaining, it definitely won't be Euro (just check fiscal inconsistency between Italy and Germany, plus problems Italy has now). I would bet more on US dollar - it may lose value but it probably won't collapse.

 

[Martin Everson]

Why would FED f**k up?

You not seen outcome of emergency fed meeting this Sunday 15th? The Fed did an emergency rate cut again. The dollar rate is now near zero....lol. They are trying hard to save the US stock markets and a meltdown before they open for trading today .

US in emergency rate cut and huge stimulus plan

Plus when people move out of the markets and into cash this creates a shortage of dollars to make things worse and liquidity is needed as banks are not sitting around with huge cash on hand.

I am not sure the Fed has got it right as they should have gone to -3% by now as a posted last year in another thread before even Corono virus was known.

 

[Martin Everson]

I would bet more on US dollar - it may lose value but it probably won't collapse

Your looking at the currency side. You need to look at liability side. Any state can create a currency but its the quality of the issuing state and its productive nature that backs it that matters in the end. The one reason the dollar has done well to date is that it is backed by a state that has successfully linked the dollar to petroleum sales, international trade, gold price and reserve status. So a collapse won't happen unless there is substantial de-linking from global sale of petroleum in dollars or a move away from dollars in general international trade. One country i.e Russia can't do the move alone it requires all counter-parties to agree to do it together which is next to impossible right now. Long term however the dollar will be a second rate currency as the future belongs to China and Asia in general.

 

[KJK]

Yes that is very worrying, Fed lowers USD rates to zero (or 0.25 %) and reaction of the market? Minus 5 % today according to S&P futures.
I see one hope - there is some delay (perhaps 2-3 days) before these operations have effect on the funds and banks.

If you are suggesting that e.g. Saudis and Emiratis will quit their peg to the dollar, and everyone (like Russia, Iran...) will sell and trade oil and natural gas only in euros or yuan, that is definitely possible. I just don't think it is not in most countries' interest right now.

 

[Martin Everson]

I just don't think it is not in most countries' interest right now.

You are right. There are oil producing countries that have US denominated debt they issued that are taking emergency measures to try and return to the eurodollar bond markets as we speak else a sovereign bond default at these low oil prices is imminent if prices don't recover i.e Nigeria to name one. Saudi Arabia cannot survive with low oil prices very long. They need well over $70 a barrel just to balance their budget else they will be back issuing US denominated dollar bonds to balance their budget also. The demand for dollars will grow hence fed action to flood the market with dollars is needed.

Saudi is most worrying as their is political problems internally the media is not covering very well. The coke addicted MBS has lost his mind with with his OPEC actions.