Panic or Opportunity?

Panic is highly contagious, more so than any virus or disease. And, in many instances, it’s much more dangerous if you’re infected by it.

With so much uncertainty and negativity in the world, led by a rise in the scarcity mindset developed during the COVID-19 Crisis, I want to highlight opportunities entrepreneurs have been presented of late. 

I’m not doing this to make entrepreneurs feel warm and fuzzy, either. Instead, it’s a warning shot, so you don’t succumb to the panic. There will be opportunity for all of you — provided you can stay level headed and optimistic. In times of crisis, new possibilities emerge. However, you’ll only be able to identify them if you can stay above the panicked fray. 

So let’s look at some recent winners amidst the panic…

 

Fund Manager Turns $27 Million into Over $2 Billion During COVID-19 Market Crash

Let’s start with Bill Ackman, the billionaire fund manager… he’s taken a lot of flack lately. Why? In part because he turned $27 million into a couple billion last month. People, many of which have scarcity mindsets, criticized his gargantuan profit given the suffering in the world right now. Barron’s wrote, “The activist investor came under fire this week after revealing he made $2.6 billion on a $27 million bet that U.S.and European credit spreads would widen as the global economy slowed during the coronavirus pandemic.”

 

Zoom Video Communications Experiences Parabolic Rise in Value

Let’s look at Zoom Video Communications — the tech company that has been around for years enabling people to tele and video conference with absolute ease. 

I’ve been using Zoom for a long time. It’s always been a dependable service provider, but something I’ve taken for granted, until now. And I’m not the only one. From teachers, entrepreneurs to groups of friends wanting to hang out on a Friday night, Zoom’s now wide-reaching and vital applications have resulted in the company’s market capitalization doubling… in the last three months! 

In fact, Zoom has become so successful during the COVID-19 Crisis its market cap now exceeds that of Delta Airlines, American Airlines, and United Airlines, combined! As of Friday, it was nearly a $40 billion tech company.

 

Netflix — Ever Resilient

With everyone at home these days, Netflix trades near all-time highs, despite the broad stock market losing roughly 25% of its value since the ‘COVID Crash’. 

Netflix’s viewership is hovering around all-time highs during the pandemic. A once fringe player in the world of Blue Chips, the streaming service provider is proving that its market capitalization is more resilient than many banks, airlines, and couriers. This crash has solidified Netflix as a perceived safe-haven equity. Amazing.

 

Oil: The Hardest Hit Commodity During the COVID-19 Crisis Provides Incredible Trading Opportunity in the First Week of April

Traders make a living navigating volatility. And no commodity has been harder hit and more volatile than oil during this crisis. Various types of oil can be traded on the spot market — WTI, Brent Crude, and Western Canadian Select, to name a few. 

After crumbling to nearly $20 this past week, WTI Crude skyrocketed almost 50% in barely 72 hours — closing the week at $28.34. Brent Crude provided a similar trading opportunity. And Western Canadian Select, the hardest hit of all the mentioned oils (lost nearly 85% of its value in 6 months), bottomed this past week at $3.82 per barrel (less than a Big Mac meal at McDonald’s) before skyrocketing in 48 hours to nearly $10 — good for more than a 150% gain in a matter of days! That’s a potential life-changing return for a trader willing to make a big bet during a time of panic.

 

Entrepreneurs Have Opportunity During COVID-19 Crisis

For the naysayers out there still wrapped up in the scarcity mindset and pooh-poohing the examples above of success because they aren’t in the trading, technology or commodity markets, and are therefore irrelevant… you need to think differently. You need to think entrepreneurial. 

New problems, challenges, wants, and needs have arisen during the COVID-19 Crisis that will not be going away anytime soon. Entrepreneurs typically succeed based on the ability of their product/service to solve others’ problems or fulfill needs and wants. 

What’s more, never in the history of entrepreneurship (or mankind for that matter), has it been easier to reach prospective customers. Smartphone use has skyrocketed. The average American spends more than three hours per day on their phone — and that stat was derived before the COVID-19 Crisis. Now, people are using their phones even more, given the social distancing and quarantine measures enacted across the globe. What an opportunity to reach new audiences!

Clear your mind from the panic. Look at the world with a fresh set of eyes and an open mind. The opportunities that are already emerging from this crisis will benefit the creative and industrious entrepreneur. 

Stay hungry,

 

 

 

Aaron

PS — There’s more to entrepreneurship than just selling things. Subscribe to my newsletter below to find out what you can do to improve as an entrepreneur. Only my best content will land in your inbox. 

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