Coronavirus Economic Impact -Any Safe Havens for Investors?

The Coronavirus alerted us to how vulnerable the global economy actually is. But are there any safe havens for investors?Show more

Nobody knows for certain how much the economy will be impacted by Covid-19, but it will definitely be into the trillions.
Yesterday morning the Dow Jones crashed again and the market was temporarily suspended. Over the past 2 weeks trillions were shed from the value of the market which is down over 25% from its all time high. This has erased almost all the gains since Trump came into office. This is after the fed has cut rates to almost zero and announced they would be injecting 1.5 trillion into the economy. The markets are still tanking and they are running out of bullets quickly.
New York just announced they have reached a similar number to Wuhan just before the city was quarantined. The Surgeon general just announced "We could be the next Italy" referring to the second worst hit country only after China and is currently under complete countrywide lockdown.
The US Centers for Disease control is recommending a nationwide halt to gatherings of more than 50 people for the next 8 weeks. The economic impact on sports, concerts and events could reach the billions. Not to mention the ancillary businesses that provide drinks, food, lodging tourism and other related industries
Stock market - so far hemorrhaging trillions even after fed rate cut and announcement of 1.5 trillion injection. is the market at the bottom now? Most people think this is unlikely so stocks likely not a great choice.
REITS? We have discussed REITs on the channel before, real estate investment trusts, certain sectors like health care always stay strong in recessions and many experts suggest them as a safe haven. But three biggies Alexandria Real Estate Equities is down -17.21% (ARE), Healthcare Trust of America is down -16.69% (HTA) and Medical Properties Trust is down -23.44% (MPW) so health care REITS, not safe havens.

silver and gold -usually considered a safe haven but no - silver has absolutely tanked, we did a video a few months ago showing that silver actually doesnt do well historically in recessions,people went crazy, how dare you silver is real money, anyway Ill post a link above and at the end of this video. silver has gone from about 19 dollars down to 13. Gold not far behind also tanking. Now for the record its not a bad idea to hold some metal just in case, just dont go all in and be aware that you may have some downward pressure in the short term
Bitcoin - the supposed "safe haven" in tough times - it plunged to a low of $3700 dollars at one point, just above $5000 right now people selling off bitcoin as well when the selling frenzy started. Not a bad idea to hodl some Bitcoin as an emergency fund just not all in, and has not been a safe haven.

people are hoarding cash, but cash, if they start printing money again will create inflation and devaluation of the dollar. Interest rates are also at zero.

So where is the money going? Roofstock, which is a rental property sales website, has seen traffic from Asia increase by 500%. Many investors, including international investors are piling into rental properties, single family homes as a safe haven. Now if these are in bubble areas I might be scared,as we are likely to see a correction in the future. In non bubble regions, rental properties are probably a good plan, and doubly so because borrowing money is very cheap right now. If the economy worsen well see people losing homes they'll need a place to rent. Single family homes are the most liquid if you need the money so probably will continue as a safe haven. (CONTINUED IN VIDEO)

Investing in the right type of business can also make sense. Investors can acquire recession resistant businesses with existing cash flow if they have the budget, buy a chain of franchises, certain industries also carry significant tax benefits through the section 179 tax deduction. For high net worth individuals this can be significant. Certain industries, best to keep away, but businesses like automotive repair, commercial cleaning, property management and real estate will likely see continued growth. If you are an investor seeking franchise acquisitions you can contact us at Franchise City to discuss your options.

For those of you with little to no money, wake up call. Its really time to pay off your debts, time to start that side hustle you have been thinking about for years and doing nothing about, time to build some digital skills, start that online business, start that YouTube channel, finish that book, stop spending like it will never end, and prepare for a world that may not have unlimited growth. Please like and subscribe, stop hoarding toilet paper and thank you for watching.

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https://www.cdc.gov/coronavirus/2019-ncov/index.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2Findex.html
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