Even though most states are beginning to open up and let people enjoy greater freedom, there are many places in the United States where coronavirus is still spreading. As many as 24 states have areas in them where the statistics of new cases and deaths are rising. After Memorial Day weekend, it is likely that the number of new cases will rise that much faster because many people will discard the idea of social distancing in an effort to enjoy the warmer air and sunshine this weekend. Some areas are still in some type of lockdown because the numbers are still too high to take an even greater risk. It looks like the U.S. will hit 100,000 deaths over the holiday.
President Trump has made it known that he would like to see churches meeting over the Memorial Day weekend. The response from the clergy and people in many groups has largely been negative because they are not ready to open their doors, believing that the risk is still too great. Still, many churches held some type of services, trying to implement social distancing – even if meeting outdoors.
Hertz Declares Bankruptcy
Ever since 1918, Hertz has been the recognized name in car rentals. This past Friday night, the company filed bankruptcy. COVID-19 has abruptly ended the car rental industry as people have been told to stay home and curtail travel. The bankruptcy will not end its business, but it will enable the company to restructure its existing debt. This should enable it to gain a financially stable foundation again but coronavirus and a weak willingness to travel in America leaves it questionable as to how soon that will happen. Hertz has let 12,000 employees go.
Hong Kong News
Beijing has let Hong Kong know that it is going to implement a new law putting its National Security practices in operation in the city. The present mayor was put in place by Beijing and has indicated that the new practices will start this weekend. This will make any kind of protests or demonstrations illegal. So far, President Trump said he will not tolerate it and Boris Johnson, the Prime Minister of the U.K., is planning to further restrict Huawei from participating in its new 5G network.
Since people have started to travel again – though still greatly limited, oil has begun to flow. The lockdowns are now mostly limited to social distancing and this has opened the doors for people to start traveling again – even on the airlines. This has caused a small increase in oil stock prices, which is now at $33.56 for light crude.
Coronavirus certainly is an unknown factor when it comes to investments. No one can predict accurately what will happen next in the financial arena. If you are looking for a place to invest that can be expected to be reliable for some time, it is in the area of biotechnology – companies that are looking successful and on the brink of succeeding with a COVID-19 vaccine. If successful, you can be sure that it will sell worldwide, but will have to share with other companies also finding solutions. Right now, Moderna and Gilead seem to be taking the lead.
Companies that are developing test kits are also a good investment. One word of caution – some of these test kits are flawed, so do a little homework first before investing. Other strong investment ideas include companies that sell equipment to frontline medical personnel. This includes the whole gamut of PPE: masks, face shields, goggles, gloves, gowns, and more.