Novel Coronavirus. Opportunity or Threat?

Algoinsights Algorithmic Trading, Blog, Novel Coronavirus, Opportunity or Threat, Sustainability

The Year of the Rat has ushered in the Novel Coronavirus from Wuhan, China.

What a start to CNY 2020!

This virus has caused a lot of worry and anxiety across the world. Singapore is not spared. Many businesses were affected from day 1. However, NOT all businesses are affected equally.

Like in any crisis, some will profit from it and some will bleed from it.

This blog article was prompted by a conversation I had with a friend of mine who has been a user of our trading algorithms for about a year. He told me that his sales revenue on a month-to-month basis had dropped significantly since the onset of the virus about 2 weeks ago.  

“People are not coming to my retail store,” he exclaimed, “They just disappeared.”

Opportunity or Threat?

Depending on your perspective, any crisis can post as an opportunity or threat to any business.

In this case, many media and health authorities are encouraging us to use surgical masks and hand sanitizers as a precautionary measure against the virus.

As such, in Singapore and probably in most countries, the demand for surgical masks and hand sanitizers shot up all of a sudden.

And if you are in the business of these 2 products now, you will be laughing all the way to the bank. These two products shall become your best-selling products at least for the time being.

Many retailers have increased the sale prices of these 2 items due to the sudden increase in their demand. In such a case, this crisis is a great OPPORTUNITY for them. Moral aside.

Sadly, the same cannot be said for my friend and many other retailers across the world.

In most countries, about 60% of the GDP comes from the consumer sector, as such, I believe most economies will be very much affected by this virus for the time being till the virus has been overcome.

We are all told by authorities to stay indoors, not to go to crowded places, and to go out less often to avoid contracting the virus. This is good advice for consumers like us, but bad news for all retailers like F&B outlets, and shopping centers, etc. who depended on walk-in customers for business.

To these businesses, this virus crisis is a definite THREAT to them. Sustainability will be a concern for most of them.

What about us?

As algorithmic traders, I think we are the fortunate lot.

We do not have to take public transport to work like most of us. Our office is on the cloud server in NY4. Running 24 hours a day, 5 days a week. Automatically.

We do not have a boss to answer to. We are our own boss.

We do not need to wait for customers to walk through the doors to do business with us. The Forex market moves 24/5 for us to make the money we make regardless of any economic situation.

Forex trading, in my opinion, is recession-proof, disruption-proof, and crisis-proof. Isn’t this beautiful?

In a crisis like this, we stay in the comfort of our homes, read our books, and do our stuff, etc. Hungry and need to eat and drink? We call Grab Food, or FoodPanda. What a bliss.

These are some of the benefits that I saw many years ago when I started my Forex trading career. They have proven me true without fail.

Thankfully….

Thankfully my friend, like many others, has made profits with our trading algorithms and has decided to withdraw all his accumulated profits from his trading account to “support” his retail business for the time being. He was thankful for his profits. And thanks to our suite of Forex trading algorithms that have made the profits possible. Hurray.

Finally, I sincerely hope a cure to kill this virus be found soon for the good of all.

Thank you for reading my blog article.

Success and good health to all.

Victor Ang

CEO & Founder, ALGOINSIGHTS PTE LTD