In a recent survey by Reuters, 73% out of 160 economists believe COVID-19 to be very deflationary. Unfortunately, economists are typically like a stopped clock, i.e. only correct twice a day! Were the huge global monetary stimulus to lead to higher interest rates then this could cause a bond and stock market correction. Alternative investments could prove to be popular as well as those often touted as ‘inflation hedges’, for example, index-linked gilts, gold and, increasingly, Bitcoin.

What is the greatest risk once the pandemic subsides?

Source: Reuters.com

When America came off the gold standard people were uncertain as to the long-term price of gold, resulting in considerable volatility in its price. According to Forbes, “There were years, like 1975, when gold tumbled in value, falling 25%. And years, like 1979, when it soared, rising 120%. In 1973, gold’s price moved more than 3% one out of every ten days!”

Fidelity argues that Bitcoin’s volatility is similar to gold, “having an intervention resistant market, no central bank or government can step in to support or prop up markets and artificially subdue volatility”. Cash, too, is often seen a safe place in which to shelter in troubled times, although one needs to be careful of retaining cash over long periods of time.

The decline of the purchasing power of US$

Source: Investors Ideas.com

Consequentially, holding money in cash is not always a wise investment yet, in the UK, 8.2 million investors entrust their money in a cash Individual Savings Account (ISA) as opposed to only 2.4 million opening a stocks and shares ISA.

Is it now time to look at where and how your pension and savings are deployed……..?

Source: GE.Com

SGInnovte, has created a Digital Health Passport which is a Blockchain-based solution to help reduce the impact of COVID-19. It is being paid for by the Singapore government, in partnership with a local start-up, Accredify. The objective is to be able to store and share by using a QR code (on a permissioned basis) those individual COVID-19 medical records such as treatments, vaccinations, date, location and results of swab tests. This digital solution removes the reliance on analogue, paper-based procedures which can be more easily forged or lost and harder to share, especially globally. Digital Health Passport offers greater transparency, security and privacy since no personal health information is disclosed, enabling users to also select the information they wish to be shared as well as to set expiry timings.

The use of Blockchain technology to store and track COVID-19 test results has been used in The Mediterranean Hospital in Cyprus for several months using the E-H Cert App. It has been reported from The Mediterranean Hospital that, “This innovative new EHR system will provide the hospitals a fast and simple method of on-chaining the patients COVID-19 related testing and treatment records, giving a final result of the health status of the individual without showing exactly the treatment records.  Allowing government authorities, employers and other concerning parties to access said health information at the discretion of the individual but controlling privacy exposure.  So that the individual can go about life as usual”.