During the Coronavirus pandemic The rich are getting richer – faster than ever before
Ironically, it’s in times like these when everybody is overprotecting and trying to secure the little they have, that the rich come out to play. These are the times when the rich get even richer and billionaires are taking full advantage of the drops in the marketplace.
They’re getting 30 to 50% discounts on stocks that are going to make them fortunes in the future.
Not only do the rich have access to private testing and their isolation needs are covered in order to make sure that they are not infected.
Many of you might not know this, but china has been taking full advantage of this crisis in order to take back ownership of Chinese companies stocks. Companies in mainland china are under direct and indirect control by the state, because most of them have secured the majority of their funding from the government, so there is an economic interest in how these companies perform.
The moment the market crashed, China’s biggest technology players began repurchasing their own stocks from international investors with money the government has put at their disposal. JD.com, china’s biggest eCommerce and technological player, has been purchasing stock worth 2 billion dollars every 24 hours. Despite the troubling times, JD is still valued at 67 Billion in total.
China is using the coronavirus to strengthen it’s technological and financial position.
But they weren’t the only ones to move.
Warren buffet was quick to move. Last year the world titled it’s head like a golden retriever not understanding why Buffet was sitting on 128 Billion dollars cash and not taking full advantage of the market that seemed to be going to the moon, well, now we know why!
Yes, Berkshire Hathaway has lost almost between $70-90 billion dollars from the drop in the Dow Jones, but while the media was focused on how much money Warren is losing, he was quietly expanding his position acquiring stocks in almost every american airline company.
His reasoning: airlines are not flying -> people panic -> stock price drops -> he’s buying -> we overcome coronavirus -> companies resume their usual activity.
The real value of the service has not been damaged long term by the virus, so he’s getting a big chuck into some of the best american companies for a fraction of the cost.
Crypto is also an incredible opportunity with the price dropping by almost 50% and immediately jumping back 20% which investors looking to cash in at least 30% in earnings before the end of the year.
40% of Americans are living paycheck to paycheck, with this segment of the population unable to absorb an expense of $400 or more.
Poor people are the most impacted by this epidemic, the rich will be ok and the gap between social classes will grow even further.
This is part 10 out of 15 about a discussion on the world in the context of the coronavirus pandemic.
You can watch the full video here: