Over the past few years, Cryptocurrency has become increasingly popular with retail investors. The past few months have only amplified that popularity with the growth of economic stimulus. Some altcoin cryptocurrencies have soared, with some pushing almost 1,000% increase from last year. However, In the past several weeks, Dogecoin has been pushed to the front of the media headlines thanks to Chinese app phenomenon, TikTok.
When you hear the words “bubonic plague”, the horrors of a time ravaged with illness and death probably enter your mind. You may think with the advancements of modern medicine and science that a pandemic like this is a thing of the past, that there is no chance of it returning with a vengeance again. However, this assumption is wrong. On July 4, 2020, a hospital in Bayannur, China told authorities of a suspected plague case, which they confirmed as the bubonic plague three days later. A week after this initial plague case, two more citizens developed plague-like symptoms after eating marmot meat. The city responded with a Level 3 warning, telling its citizens to limit face to face interactions and to avoid the consumption as well as handling of marmots. Marmots are large ground squirrels, resembling groundhogs, and are popular forms of meat for dishes in China and Mongolia. Officials closed five grassland scenic points, enacted stricter regulations of other grassland tourist sites, and told its citizens to not eat or hunt marmots. These plague cases in China come during a time devastated by a comparable influenza, COVID-19 or the novel coronavirus. The novel coronavirus is a viral disease that spreads through respiratory droplets, like from sneezing or coughing. Similar to the bubonic plague, COVID-19, is easily spread and just as deadly. The two pandemics are quite similar in their disastrous effect on humanity; however, when diving deeper into their cellular makeup, they are quite different.
On July 15, Tesla Motors closed at its highest price of $1546.01 per share on the New York Stock Exchange, bringing Tesla’s total growth up 1,111.75 points since the start of this year. Multiple causes can be linked to Tesla's sudden market growth: the early reopening of its Fremont factory in California, the stable quantity of deliveries throughout harsh pandemic conditions, or the newest electric car model set to release in 2021. Whichever it was, investors betting against Tesla combined for a total loss of more than $15.9 billion since the start of this fiscal year (S3 Partners). Tesla’s recent rise has generated significant consequences for short-sellers. With Tesla still on the rise and the economy reopening, short-sellers are now confronted with the decision to buy back their shares or hold their position as Tesla will release its second quarter financials within the next week.
The coronavirus pandemic has ravaged every aspect of the United States and the conclusion of quarter two has revealed some interesting economic results. The juxtaposition of a thriving stock market with a fall in GDP and rise in unemployment has left many wondering what the actual state of the economy is. Understanding the interactions between the stock market and economy is key to understanding what has actually happened to both during this pandemic.
“I think the people in this country have had enough of experts… people from organizations with acronyms saying that they know what is best and getting it consistently wrong.” If you have read anything about Brexit, you have already heard this infamous quote spoken by the Justice Secretary Michael Gove in an interview for Sky News four years ago. These words preceded the National Referendum Vote determining the UK’s membership in the EU occurring twenty days later that seemingly confirmed the Justice Secretary’s haunting prediction. The citizens of the United Kingdom, against the recommendations of the Organisation for Economic Co-operation and Development, the International Monetary Fund, the Bank of England, the Institute for Fiscal Studies and countless other respected economic, financial, and governmental institutions, voted to leave the European Union.
Partisan politics have played a large role in the course of the stock market's history. With Presidents, Senators, and Congressmen trying to take credit for the highs and blaming the opposing party when something turns south. Policy changes directly affect the price of stocks since they can change the investor outlook on future profitability.
Individuals are now spending more time engaged with their mobile devices than ever before. This past March, the amount of time spent on mobile devices consuming global news increased by over 200% compared to the year prior (Nielsen). Given there typically is not a global pandemic every March, it is not surprising to see this drastic increase of concerned citizens staying up-to-date with current events. The ongoing pandemic paired with the call to action to fight the racial inequality that still exists in our society has resulted in individuals being more driven to utilize the power of their mobile devices.
On June 22nd, the White House released a proclamation suspending the entry of foreign workers who may hinder U.S. economic recovery by filling job openings that could otherwise be filled by citizens. The proclamation was issued under the logic that high unemployment will persist if labor supply outpaces labor demand, and it is intended to last until the end of 2020. The administration argues that this policy will mostly help historically disadvantaged groups – those that are “last in” during expansionary periods and “first out” during contractionary periods. Workers on certain visas (including H-1B, H-2B, J-1, and L-1) are subject to this suspension, though there are also exceptions to this policy change such as workers in healthcare and agriculture who are necessary in combating COVID-19 and ensuring a stable food supply. A senior official of the Trump administration commented that the proclamation intends to protect nearly 525,000 jobs. Some industries – particularly the tech industry – have been vocal in criticizing this suspension, as many industries rely on such visas for effective and, sometimes, cost-efficient employment. This policy, as well as the years preceding this proclamation, may serve as a future case study for arguments against some forms of wealth distribution like universal basic income.
Since the World Health Organization declared the Covid outbreak to be a global pandemic on March 11 of this year, domestic and international travel has drastically declined. Among the sectors impacted by the border closures, travel restrictions, and visitor quarantine measures throughout 217 countries, the airline and hotel industries have been most heavily affected by the economic shutdown. The restrictions initially began due to widespread general social limitations but have infiltrated every corner of the American economy (Lee). Of the $8 trillion globally produced by tourism in 2018, the United States generates the largest portion at $214.5 billion. As we enter the peak season of leisure travel, mid-June through August, it is evident that the US is vulnerable to losses if the restrictions and regulations persist on the tourism industry (Quinn).
International crisis of COVID-19 has thousands of people in Latin America asking themselves how to face it and it leads to the question of how bad the Latin American economy will be affected. Many people have lost their jobs internationally and now the question for many in Latin America is the not obvious effects of the pandemic in the economy of the region. The novel Covid-19 was expected to create an economic contraction in Latin America and the Caribbean of -5.3% (ECLAC). The margins of development of the region for this year were already low at 0.4%. Nevertheless, the effects of the pandemic has worsened the current rate of growth, and the predicted -5.3% margin of development is the worst rate of expansion of GDP in Latin American history. For context, the previous recessions in both 1914 and 1930 were -4.9% and 5% respectively (ECLAC). The pandemic has shown external economic damages such as the decrease in the price of commodities and structural problems that the countries of the region are being affected by such as the informal worker market and trade.
