The current pandemic has caused uncertainty and fear throughout the country. These are tumultuous times, and it always pays to be prepared. That’s why we are giving you a no-holds-barred look into what we can realistically expect from the lock-down fallout.
In some ways, the lock-down fallout will be much worse than COVID-19 itself because it will have longer-lasting, global effects. Since COVID-19 impacted the entire globe, we can expect markets all across the planet to be thrown for a loop. Expect tons of financial uncertainty and employment challenges in the wake of COVID-19.
The good news is that knowing what to expect can better protect you when it comes to ensuring that you have what you need to survive and thrive in a post-COVID-19 world.
The Oil Market
With fewer people using their cars and spending money on gas, the oil markets have taken a substantial hit. On top of the decreased demand for oil and gas, you also have instability in the OPEC region, leading to local squabbles and increased tensions. Before COVID-19 hit the globe, there was already a small price war happening, and the virus only exacerbated the problem.
On the flip side, gas is exceptionally low right now, so if you do need or want to hit the open road, you’ll be able to do so without breaking the bank. On the other hand, instability in the markets is never really good for anyone, which leads us to our next point.
Whenever there’s a major shakeup in the markets, the banks take a hit. Back in the 2008 recession, the largest U.S. industries had to deal with major fallout and insecurity for several years after the initial crash. Bank instability can lead to problems like inflation or smaller stock market crashes. That’s why the major banks were bailed out by the U.S. government in 2008.
Don’t go withdrawing all your money just yet, though. In all probability, the banks will be okay in the long run, but it doesn’t hurt to diversify your assets.
Global Stock Market Crash
We have already seen signs of the global stock market crash, and it will only get worse as time goes on. With some countries opening their borders before others, you have a situation ripe for global chaos. If there’s any bright side to this near-certain reality, it is that we will all be in the same boat.
Sadly, many businesses just aren’t going to survive COVID-19, which means that plenty of people will still be out of work even once this is all over. Even the businesses that do survive will be cutting back on their employees. Now might be the best time to sharpen up your skills and start to diversify your income streams. It never hurts to be prepared, and making yourself more marketable can’t hurt!
The fallout of the pandemic could be worse than the illness itself, but with the proper preparation, you’ll know what to expect. And knowing is half the battle.