The Latest on Economic Volatility Created by the Pandemic

The Latest on Economic Volatility Created by the Pandemic
Mediamodifier / Pixabay

There is still a lot of volatility in the current economic environment. What does this mean for investors during the pandemic?

Play Quizzes 4

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 2020 hedge fund letters, conferences and more

As the calendar flipped to 2021, many people are now surprised to see that there is still so much volatility in the economy. The reality is that even though there is a vaccine against the pandemic, it is going to take a while for these vaccines to be distributed in a meaningful manner. Even throughout the United States, each state is acting as its own country. Some states, such as Alaska, have done an exceptional job at distributing the vaccine. Other states, such as South Carolina, have fallen flat.

This Is What Hedge Funds Will Need To Do To Succeed In The Long Term

InvestLast year was a banner year for hedge funds in general, as the industry attracted $31 billion worth of net inflows, according to data from HFM. That total included a challenging fourth quarter, in which investors pulled more than $23 billion from hedge funds. HFM reported $12 billion in inflows for the first quarter following Read More

These issues can be extrapolated to the rest of the world as well. Therefore, it should come as no surprise that the world's economies appear to be responding differently as the calendar turns to a new year. For example, the news was recently released that China's economy had roared back to the growth rate that it was enjoying before the pandemic was unleashed on the world. Specifically, GDP appeared to climb more than six percent during the final quarter when compared to 2020. This made China one of the few economies to grow during 2020 and puts it in a prime position to pass the United States soon. With all of this in mind, what does this mean for investors moving forward?

There Are Still Opportunities To Be Found for Investors Willing to Look

Because the world economy continues to swing quickly back and forth, this means that there are still opportunities for investors to make a significant amount of money as long as they are willing to capitalize on these changes. For example, many people are looking at an interest rate table to help them trade various types of currency.

Because the global economic environment is so volatile right now, it should come as no surprise that the valuation of numerous currencies fluctuates quickly. For those who are paying attention to the market, this is an excellent opportunity to get more involved in this investment environment. By trading between different currencies at a favorable exchange rate, people can make a significant amount of money. Furthermore, this is also an excellent way for people to diversify their portfolios outside of traditional bonds and stocks. Those who are worried that they are not meeting their retirement goals may have a way to get back on track.

Vaccines Will Be Rolled Out More Quickly, Hopefully Helping the Economy

Specifically, in the United States, there are hopes that a new administration will be a little bit more efficient when it comes to rolling out the vaccines - if that is what will allow us to open up for the world. With reports coming out that the new administration did not seem to inherit a coherent vaccination plan, it should come as no surprise that this may take a little while. On the other hand, some states are already starting to expand the number of eligible people for the vaccine.

It is off course hoped that as people continue to get vaccinated, the economy should continue to open up. Some parts of the country are already open completely, despite rising case numbers. As Vaccinations go up, these case numbers should start to drop. The only way that the economy is ever going to indeed return to normal is if we can get this virus under control. Everyone must do their part and make sure they get vaccinated. Then, people will be able to invest in the economy freely once again, allowing the United States to keep up with some of its biggest rivals, such as China.

Updated on

Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Next article Amazon’s FBA (Fulfillment by Amazon) Service Is Growing: What Are the Benefits and Drawbacks?

No posts to display