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It's 1918, the world is in the middle of a catastrophe.
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For the last four years, Europe was a ground zone for war.
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The allies on one side and central powers on the other.
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Tenths of millions of people have already lost their lives.
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However, that's nothing compared to what was coming.
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The world was about to face one of the deadliest diseases in history.
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No one really knows where exactly it started, some say it began in Kansas, others point
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fingers at China, but during the war, no one really cared because a more severe crisis
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was in front of them.
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And The flue was just one of the consequences of war as people imagined at that time, however,
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when it reached Spain, the Spanish media did not stay silent since Spain was neutral during
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the war, and that's when the world started paying attention.
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Even then, it wasn't the top priority since allies were about to win the war, and they
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wouldn't let some kind of a flue to waste all their efforts that they have been putting
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for the last four years.
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They were ready to do everything to end the war finally.
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It is estimated that 500 million people were infected, it might not be much by today's
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standards because the population has soared in recent decades, but back then, it was one-third
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of the world population.
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And the death toll reached up to 100 million people to some estimates or 6 to 8 percent
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of the global population.
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That is even higher than what the greatest conflict in human history caused (ww2).
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Crises are, of course, bad, regardless if it is a virus that's spreading around the
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world or a military conflict or even an economic crash.
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However, despite all of that, every crisis presents opportunities.
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It might seem disgusting to cash out on the misery of others.
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But that's how humanity has been progressing in the entire of its existence.
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And the crises we are experiencing now is no different.
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Of course, it's unfair to compare the consequences of each crisis.
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However, they all follow similar traits and patterns.
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Crises by their natures seem bad.
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I mean, who wants a slowing economy, and high unemployment, especially when you are so dependent
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on that monthly paycheck.
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However, a crisis is nothing but merely a transfer of wealth from one group to another.
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To some, its actually a disaster that would make them poor; to others, its an opportunity
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to make a few more millions.
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Looking at the markets now, it seems like everything is down, the SP500 has been down
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by a thousand points.
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Still, it had recovered a little bit, at least at the time of writing this script because
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before you get to watch the video, it must be recorded, edited, sent to an animator,
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animated, and then finally uploaded on the channel.
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However, if YouTube is going to decide that you aren't going to be interested in this
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video, you might not get even the notification, so give this video thumbs to let YouTube know
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that you are interested.
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Anyway, its difficult to predict the future, maybe almost impossible, but what we can assure
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ourselves is that humanity went through many many crises, and one way or another, we have
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figured out a solution and somehow solved the problem.
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And while we are discussing the crises, people on the other side are earning millions if
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not billions out of it.
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No matter how long this crisis is going to last, sooner or later, a vaccine will be created,
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and the world gets back to normal.
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Borders will be opened again; offices will get back to work, restaurants, cafes, and
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malls will welcome everyone as they did before the crises, which means the panic is going
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to vanish.
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Which means that the SP500 will rise again or at least get back to where it was.
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Smartest investors understand that perfectly, so although the market is still plummeting,
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they are slowly but significantly investing.
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From December 2007 to the summer of 2008, the S&P500 went down by 50 percent.
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That is a significant drop because the real estate market collapsed and dragged down with
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it the entire economy.
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Millions of people lost their jobs, businesses were closing down one by one, and even some
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of the largest corporation declared bankruptcy.
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It seemed like the world would never recover from such a catastrophe, however, few years
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down the road, the economy didn't just recover, but the sp500 hit the record high of 3400
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points before the panic of the current virus.
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And Whoever understood the nature of such crises emerged victories after it.
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Of course, those who made the wrong bet lost lots of money.
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That's why it's important to understand how the crisis is impacting the world.
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Which industries it is boosting and which ones it is destroying.
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And even those industries that are suffering, which companies would survive the storm and
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which ones wouldn't.
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In March, the US has banned the entry of all foreign nationals who have traveled to China,
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Iran, Austria, Belgium, and many other nations 14 days before their arrival.
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US citizens or permanent residents who have visited a high-risk area had to fly into one
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of the 13 international airports with enhanced entry screening capabilities.
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On March 18, President of the united states announced that the US would close its northern
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border with Canada, and on March 20, the US and Mexico agreed to restrict non-essential
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travel over their shared border for 30 days.
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That was a big hit for the aviation industry.
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In fact, before that, multiple other countries, especially European countries, completely
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closed their borders like France and Bulgaria.
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With so many restrictions, revenues began to fall down significantly as everyone was
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asking for a refund and began canceling their flights, but that is not the fault of these
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airliners, many of them are still strong companies with a huge fleet of planes.
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That caused a panic in the market which damaged the industry even further, Take an example
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of the American Airlines, the stock price literally fell from over 30 dollars to just
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10, that looks like a company is about to go broke, which might really happen.
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But they aren't alone; every other airliner got the hit.
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The stock price might even go further.
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But the fact is, we live in such a globalized world, that flying is not going to stop.
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Our economies are so interconnected that the dice will keep rolling.
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So once the flight restrictions will be unbanned, airlines will restore their schedules, as
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usual, and the stock price will get back to where it was.
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Which means now is the best time to invest.
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The challenge is to invest in the right airline.
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I mean, you have to be confident that it has enough resources to survive the crises.
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That's why things like balance sheets and income states exist, especially if its a publicly-traded
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company.
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The problem with crises is that they are causing uncertainty.
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And that is bad for businesses; it scares off the investors and pushes them to sell
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their investments.
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Investors are afraid to lose their fortunes, so they are massively selling their shares
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and cash out before it gets worst, or they simply want to sell the shares that would
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go down anyway and invest in companies that would rise in the middle of this crises.
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But regardless, it is going to reduce the demand of certain companies which would lead
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their stock prices to plummet anyways.
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Let's take another example, how else the virus is impacting society.
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Entire nations are declaring quarantine and advising their citizens not to leave their
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homes, including the united states.
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Which led to fewer people to move around, so companies like Uber and Lyft, whose business
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model depends on moving people, have suffered dramatically.
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In under a month, the stock price went from over 40 to under 15, but it's slightly recovering.
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Uber was already doing pretty bad before the virus, so it suffered enormously.
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Even if you take the most valuable company in the world - Apple.
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The stock price is falling like a rocket; it's down by a hundred backs to 229 dollars.
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on one side, their supply-side has stopped.
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Due to the virus, the factories are shut down in China, and on the other, the panic is causing
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uncertainty, so people would rather save than spend their last thousand dollars.
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On top of that, Apple closed all of its stores.
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But despite the crises, Apple hasn't lost its brand name, nor its manufacturing sides
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or stores.
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Once everything is back, the stock price would get back to where it is.
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But the question, when!
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Probably when a vaccine is ready, vaccines aren't easy to develop, they take years of
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research and work and hundreds of millions of dollars if not billions just to develop
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a vaccine against one disease.
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However, without a vaccine, its a matter of time before everyone will get infected.
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Entire nations are on the line to get the vaccine so that they can get back to business.
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Dozens of companies and public labs around the world are working on it to prevent the
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spread of the virus.
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The most notable of them are BioNTech, CureVac, and Moderna.
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This is the stock price of BioNTech; it literally surged once the panic took over the world,
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just take a look at this graph.
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So whoever is going to create the vaccine first will profit enormously.
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As we have mentioned before that, a crisis is a crisis for some but an opportunity for
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others.
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It's slowing down economies, taking companies out of business, rising unemployment rate,
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but at the same time making others enormously rich.
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It doesn't matter what the nature of the crises is.
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They are one way or another impacting the economy, whether its a real estate, a dot
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com bubble, a bitcoin bubble, or virus.