FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
HFM information and reviews
HFM
89%

COVID-19's Footprint on the Investment World


7 January 2021

It is no doubt that COVID-19 has shaken the world and rocked the financial sector, but just exactly how has this on-going pandemic made its mark? Continue reading to discover the main areas affected.

The coronavirus has altered almost all areas in either negative or positive ways. From employment, to commodities and stocks the time has certainly been remarkable. As mentioned in other articles, the stock market was soaring while the economy was down. This means there is a sort of disconnect occurring in some areas.

Areas within the financial sector that have been hit more negatively due to the virus are mainly oil & gas, and selective stocks present in the hospitality and tourism world.

Oil & gas plummeted in the height of COVID-19, but you might be asking yourself why? When the world hunkered down and entered the lockdown phase of this tragic time, the demand for this commodity took a nose-dove. Nobody needed oil or gas. Travel was at a stand-still and basic daily communities were simply not happening. With that said, as demand went down supply kept going up, there is a “backstock” of oil as these countries kept producing at their normal rate. In fact, the relation of supply and demand was so off that vessels were used as storage and the price of oil reached a point where it was nearly a zero sum cost because these companies were desperate to move the product.

In addition, the other major impacted area in investments are stocks in the hospitality and tourism industry. That is not to say that other industries are not affected as well, as recent consumer spending reports have shown a dip; the hospitality industry, similar to oil and gas commodities has reached, in some cases, a mandatory freeze. Consumers were forced to cancel bookings and re-think that planned vacation. According to BBC News, the number of global flights from July of 2019 compared to Juy of 2020 have almost been slashed in half.

Coronavirus has not only affected these two vital aspects in the investment world, but has clearly rattled other markets such as employment, pharmaceuticals, consumer spending and confidence, and more. COVID-19 has certainly left a footprint in today’s world. Will it alter markets to an extreme looking forward into the future?

This article was written and submitted by eXcentral. 

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing investing advice or a recommendation, or an offer of or solicitation for any transactions in financial instruments or a guarantee or a prediction of future performance. Past performance is not a guarantee of or prediction of future performance.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.81% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

#source

Share: Tweet this or Share on Facebook


Related

Copy Trading With Vantage: Helping Traders Trade Market Opportunities
Copy Trading With Vantage: Helping Traders Trade Market Opportunities

Ever wondered if there’s more to trading? Social Trading allows any trader to entirely mirror the trades of other seasoned traders in the market with a reputable track record...

1 Dec 2022

OctaFX broker invites everyone on a festive trading journey
OctaFX broker invites everyone on a festive trading journey

This winter, the global Forex broker OctaFX invites every trader on a four-week trading journey aboard its Festive Express. A massive New Year campaign will appeal to all who love lucrative offers. It is the perfect opportunity to start celebrating the coming year...

29 Nov 2022

ActivTrades: Infinitely scalable investing solutions
ActivTrades: Infinitely scalable investing solutions

Innovative and robust investment technology by industry leader for the most demanding institutional partners. We serve a wide range of organisations delivering first-class investment and brokerage solutions...

24 Nov 2022

Join Libertex for a chance to win 500 BTC
Join Libertex for a chance to win 500 BTC

November marks a momentous month for the Libertex Group as the veteran broker gears up to commemorate its 25th anniversary. After surviving and thriving a full quarter century...

24 Nov 2022

AMarkets increases the leverage for cryptocurrency pairs
AMarkets increases the leverage for cryptocurrency pairs

AMarkets has increased the leverage to 1:100 for BTC/USD and BTC/EUR pairs, and to 1:10 for other cryptocurrency pairs. There are now 27 cryptocurrency pairs...

23 Nov 2022

Olymp Trade’s 8th birthday event results
Olymp Trade’s 8th birthday event results

Our celebration for Olymp Trade’s eighth birthday turned out to be one of the most spectacular events of the year. We held a series of online and offline events, all connected by the theme of freedom...

21 Nov 2022


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
FxPro information and reviews
FxPro
83%
Vantage information and reviews
Vantage
83%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.