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  • It's 1918, the world is in the middle of a catastrophe.

  • For the last four years, Europe was a ground zone for war.

  • The allies on one side and central powers on the other.

  • Tenths of millions of people have already lost their lives.

  • However, that's nothing compared to what was coming.

  • The world was about to face one of the deadliest diseases in history.

  • No one really knows where exactly it started, some say it began in Kansas, others point

  • fingers at China, but during the war, no one really cared because a more severe crisis

  • was in front of them.

  • And The flue was just one of the consequences of war as people imagined at that time, however,

  • when it reached Spain, the Spanish media did not stay silent since Spain was neutral during

  • the war, and that's when the world started paying attention.

  • Even then, it wasn't the top priority since allies were about to win the war, and they

  • wouldn't let some kind of a flue to waste all their efforts that they have been putting

  • for the last four years.

  • They were ready to do everything to end the war finally.

  • It is estimated that 500 million people were infected, it might not be much by today's

  • standards because the population has soared in recent decades, but back then, it was one-third

  • of the world population.

  • And the death toll reached up to 100 million people to some estimates or 6 to 8 percent

  • of the global population.

  • That is even higher than what the greatest conflict in human history caused (ww2).

  • Crises are, of course, bad, regardless if it is a virus that's spreading around the

  • world or a military conflict or even an economic crash.

  • However, despite all of that, every crisis presents opportunities.

  • It might seem disgusting to cash out on the misery of others.

  • But that's how humanity has been progressing in the entire of its existence.

  • And the crises we are experiencing now is no different.

  • Of course, it's unfair to compare the consequences of each crisis.

  • However, they all follow similar traits and patterns.

  • Crises by their natures seem bad.

  • I mean, who wants a slowing economy, and high unemployment, especially when you are so dependent

  • on that monthly paycheck.

  • However, a crisis is nothing but merely a transfer of wealth from one group to another.

  • To some, its actually a disaster that would make them poor; to others, its an opportunity

  • to make a few more millions.

  • Looking at the markets now, it seems like everything is down, the SP500 has been down

  • by a thousand points.

  • Still, it had recovered a little bit, at least at the time of writing this script because

  • before you get to watch the video, it must be recorded, edited, sent to an animator,

  • animated, and then finally uploaded on the channel.

  • However, if YouTube is going to decide that you aren't going to be interested in this

  • video, you might not get even the notification, so give this video thumbs to let YouTube know

  • that you are interested.

  • Anyway, its difficult to predict the future, maybe almost impossible, but what we can assure

  • ourselves is that humanity went through many many crises, and one way or another, we have

  • figured out a solution and somehow solved the problem.

  • And while we are discussing the crises, people on the other side are earning millions if

  • not billions out of it.

  • No matter how long this crisis is going to last, sooner or later, a vaccine will be created,

  • and the world gets back to normal.

  • Borders will be opened again; offices will get back to work, restaurants, cafes, and

  • malls will welcome everyone as they did before the crises, which means the panic is going

  • to vanish.

  • Which means that the SP500 will rise again or at least get back to where it was.

  • Smartest investors understand that perfectly, so although the market is still plummeting,

  • they are slowly but significantly investing.

  • From December 2007 to the summer of 2008, the S&P500 went down by 50 percent.

  • That is a significant drop because the real estate market collapsed and dragged down with

  • it the entire economy.

  • Millions of people lost their jobs, businesses were closing down one by one, and even some

  • of the largest corporation declared bankruptcy.

  • It seemed like the world would never recover from such a catastrophe, however, few years

  • down the road, the economy didn't just recover, but the sp500 hit the record high of 3400

  • points before the panic of the current virus.

  • And Whoever understood the nature of such crises emerged victories after it.

  • Of course, those who made the wrong bet lost lots of money.

  • That's why it's important to understand how the crisis is impacting the world.

  • Which industries it is boosting and which ones it is destroying.

  • And even those industries that are suffering, which companies would survive the storm and

  • which ones wouldn't.

  • In March, the US has banned the entry of all foreign nationals who have traveled to China,

  • Iran, Austria, Belgium, and many other nations 14 days before their arrival.

  • US citizens or permanent residents who have visited a high-risk area had to fly into one

  • of the 13 international airports with enhanced entry screening capabilities.

  • On March 18, President of the united states announced that the US would close its northern

  • border with Canada, and on March 20, the US and Mexico agreed to restrict non-essential

  • travel over their shared border for 30 days.

  • That was a big hit for the aviation industry.

  • In fact, before that, multiple other countries, especially European countries, completely

  • closed their borders like France and Bulgaria.

  • With so many restrictions, revenues began to fall down significantly as everyone was

  • asking for a refund and began canceling their flights, but that is not the fault of these

  • airliners, many of them are still strong companies with a huge fleet of planes.

  • That caused a panic in the market which damaged the industry even further, Take an example

  • of the American Airlines, the stock price literally fell from over 30 dollars to just

  • 10, that looks like a company is about to go broke, which might really happen.

  • But they aren't alone; every other airliner got the hit.

  • The stock price might even go further.

  • But the fact is, we live in such a globalized world, that flying is not going to stop.

  • Our economies are so interconnected that the dice will keep rolling.

  • So once the flight restrictions will be unbanned, airlines will restore their schedules, as

  • usual, and the stock price will get back to where it was.

  • Which means now is the best time to invest.

  • The challenge is to invest in the right airline.

  • I mean, you have to be confident that it has enough resources to survive the crises.

  • That's why things like balance sheets and income states exist, especially if its a publicly-traded

  • company.

  • The problem with crises is that they are causing uncertainty.

  • And that is bad for businesses; it scares off the investors and pushes them to sell

  • their investments.

  • Investors are afraid to lose their fortunes, so they are massively selling their shares

  • and cash out before it gets worst, or they simply want to sell the shares that would

  • go down anyway and invest in companies that would rise in the middle of this crises.

  • But regardless, it is going to reduce the demand of certain companies which would lead

  • their stock prices to plummet anyways.

  • Let's take another example, how else the virus is impacting society.

  • Entire nations are declaring quarantine and advising their citizens not to leave their

  • homes, including the united states.

  • Which led to fewer people to move around, so companies like Uber and Lyft, whose business

  • model depends on moving people, have suffered dramatically.

  • In under a month, the stock price went from over 40 to under 15, but it's slightly recovering.

  • Uber was already doing pretty bad before the virus, so it suffered enormously.

  • Even if you take the most valuable company in the world - Apple.

  • The stock price is falling like a rocket; it's down by a hundred backs to 229 dollars.

  • on one side, their supply-side has stopped.

  • Due to the virus, the factories are shut down in China, and on the other, the panic is causing

  • uncertainty, so people would rather save than spend their last thousand dollars.

  • On top of that, Apple closed all of its stores.

  • But despite the crises, Apple hasn't lost its brand name, nor its manufacturing sides

  • or stores.

  • Once everything is back, the stock price would get back to where it is.

  • But the question, when!

  • Probably when a vaccine is ready, vaccines aren't easy to develop, they take years of

  • research and work and hundreds of millions of dollars if not billions just to develop

  • a vaccine against one disease.

  • However, without a vaccine, its a matter of time before everyone will get infected.

  • Entire nations are on the line to get the vaccine so that they can get back to business.

  • Dozens of companies and public labs around the world are working on it to prevent the

  • spread of the virus.

  • The most notable of them are BioNTech, CureVac, and Moderna.

  • This is the stock price of BioNTech; it literally surged once the panic took over the world,

  • just take a look at this graph.

  • So whoever is going to create the vaccine first will profit enormously.

  • As we have mentioned before that, a crisis is a crisis for some but an opportunity for

  • others.

  • It's slowing down economies, taking companies out of business, rising unemployment rate,

  • but at the same time making others enormously rich.

  • It doesn't matter what the nature of the crises is.

  • They are one way or another impacting the economy, whether its a real estate, a dot

  • com bubble, a bitcoin bubble, or virus.

It's 1918, the world is in the middle of a catastrophe.

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