What a “Golden” Time to Invest in the Market!

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I’ve been talking an awful lot about gold in the past two weeks or so. 

But how can you NOT at least show some interest in a physical currency that investors use as a hedge against all existing currencies?

We’ve already seen some monstrous gains in the stock market, especially when you look at the charts for XAU/USD. 

For those of you trading the forex market, investing just 1 lot at the bottom and the top of the price rises (which would be very easy to spot for your average technical analysis trader) would have netted you at least several thousand dollars in a single trade. 

Gold is one of the few asset classes that cannot be corrupted in the traditional sense. The Federal Reserve, along with the big banks belonging into each country, can artificially print as much money as they want. But gold is a finite resource we dig up from the Earth, and as such it cannot come out of thin air. 

Investors are starting to notice that merely betting on good companies at bargain prices isn’t enough, especially when periods of higher inflation are on the rise. And rightfully so, as the USD gradually weakens. 

But what about you? Have YOU invested in gold recently, and if not, what stops you from doing so? Let me know your stance on gold by replying to the newsletter!

Quarantining Recommendations Silently Dropped by the CDC…

The CDC (Centers for Disease Control and Prevention) have made a number of stupid errors during the entire COVID-19 pandemic. Whether it was screwing up their understanding of how the virus gets transmitted, or their overnight switch on their stance regarding masks, they have an awful lot of explaining to do. 

Their newest recommendation, however, seems to be somewhat more grounded in reality. They used to highly recommend all travelers to put themselves in a 14-day quarantine upon arrival (regardless of their destination). But now, they just recommend that you follow the rules of whatever city/state you are residing in. 

Yet they still have their usual line of precautions: Avoid COVID-19 hotspots, stay at home where possible, wear your masks, wash your hands, and keep a healthy amount of physical distance from other people. 

This is great news for travelers who want to have more control over where they stay. Rather than have to postpone traveling altogether, they can just opt for countries and cities where quarantining rules are either more relaxed or non-existent to begin with. 

Almost 2000 Pilots Will Be Furloughed from Delta in October

As I have continued to say and will say that airlines are fast approaching the date (October 1) when their obligations to the US federal government expire. Those obligations include maintaining a minimal amount of service and not cutting any jobs (i.e. everyone has to stay on payroll no matter what) in exchange for receiving billions in federal aid. 

Yet Delta is eager to get a head start, as nearly 1,941 pilots were recently reported to be at risk of having their jobs furloughed. For context, they currently have 11,200 active pilots on payroll. 

Even with some pilots taking early retirement packages in advance to lower the severity of the financial blow, Delta warned that this would not be enough. Especially with only 25% of their revenues fully recovered, they fear a situation where they are severely overstaffed. They anticipate only needing 9,450 pilots for the Summer 2021 schedule. 

But Delta was kind enough to offer somewhat of an ultimatum: If all pilots take a 15% cut to their minimum pay, they might be able to afford not having to furlough any pilots. 

A Spray That Can Kill COVID-19 on Airplane Surfaces?

In more positive news around the aviation sector, it looks like American Airlines has made some progress in enhancing their sanitation and cleaning procedures. 

SurfaceWise2, a long-lasting spray solution created by Allied BioScience to kill off COVID-19 on surfaces for up to 7 days, received approval from the EPA (Environmental Protection Agency) to be used on American Airlines’ aircraft. 

The spray would be used on the entire interior of each plane in-between flights, and would also be effective at eliminating other forms of viruses, fungi, and bacteria. And it supposedly works on multiple surfaces – rubber, stainless steel, plastic and more. 

If this spray ends up being effective in planes, it could become an airline staple for years to come. Not to mention its potential applications in gyms, schools, offices, and other situations where a large number of people are constantly in close proximity. 

Who Got Hit Hardest, Tourism-Wise, by COVID-19?

Several countries whose economic health relies largely on the tourism sector were brutally devastated by the COVID-19 pandemic. In other news, water is wet and the sky is blue. 

But what was the full extent of the financial damage? According to the Electronic System for Travel Authorization, the first four months of 2020 saw losses worldwide of $195 billion. And to put this number in further light, $8.9 trillion is what tourism contributes to the world’s GDP. 

  • Spain: $9.74 billion in tourism losses (total)
  • United States: $30.7 billion in losses within the first four months of 2020
  • Thailand: $7.82 billion in total losses
  • Germany: $7.26 billion in tourism revenue losses (total)
  • Italy: $6.19 billion in losses within the first four months of 2020

Just wait until the end-of-year numbers come in. Many other countries will report losses of a similar nature, and the countries I just listed stand to lose a LOT more. 

Bali Shuts Down Tourism of All of 2020, Set to Re-open in 2021

Bali, Indonesia initially planned to have September 11th as the date where foreign tourists would be allowed to enter the city and engage in local tourism. This was announced somewhere in July.

However, due to a huge surge in COVID-19 cases and pressing concerns that the virus has a long way towards total eradication, this announcement has been fully rescinded. Foreign tourists are barred from visiting Bali until the start of 2021 for the foreseeable future. No exact dates were announced in regard to resuming visitation from international tourists. 

To put this in perspective, they have 49 deaths from COVID-19 and a total of 4,000 infected people. Which isn’t much in the larger scheme of things, but it is a big deal for a smaller area like Bali. 

What do YOU think, though? Is Bali in the right to close down their doors, or should they have weathered the storm and kept tourism open? Reply to this newsletter and let us know what you think!

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