The pandemic has raised fundamental uncertainty regarding jobs, investments, pension funds and many businesses.
The two main reasons why markets are falling are the following:
The first reason is that lot of businesses will suffer huge losses with the ripple effect such as the travel industry, manufacturing, clothing, restaurants and all other non-necessity related businesses. This forces the already-easily-scared investors to pull out now.
The second reason is that the stock market is no longer a market place where stocks are traded according to their value. Due to financial engineering (i.e. dividend payouts and stock buybacks), speculations and artificial stock price inflation – in times of uncertainty, all hell breaks loose.
Institutional investors are pulling out their money from funds and stocks and placing it in safer vehicles such as gold (which was always considered a safe-haven in volatile times), dollars and bonds.
No one can really tell what is going to happen next as the virus pandemic is an unpredictable event. It can last for a month or another six months. This may affect people’s jobs, income and livelihood.
In light of current events, earning a regular income on your savings would now be more helpful than ever. It proves to be an advantage over provident funds, stocks and publicly traded bonds, which offer a very low interest rate. If you lose your job, your provident funds go down, investments go down and/or the company you work goes out of business – you would still be receiving a fixed income. It provides a stable source of cashflow on which you and your family can live on.
However, you must select the right industry the company is operating in. It must trade an essential commodity. Going back to basics is where the Coronavirus is leading us to.
Essential Commodity – Firewood
Necessities such as wood products is now in demand more than ever. Millions of people globally rely on wood products for heating and electricity. An increase in demand for firewood, pellets and coal demand has been observed due to the restrictions being placed by all of us being confined. Energy consumption is increasing as people are obliged to stay indoors and cook at home increasing the demand for heating and electricity.
Remaining at home 24/7 requires households to heat more. In Finland, households need to heat their homes for 9 months out of the year. Heating amounts to 68% of energy consumption and according to Statistics Finland, “Wood fuels remain the biggest energy sources in Finland and their share of total energy consumption was 27%.” Wood fuel consumption has increased by 3% and black liquor (which is a by-product) has increased by almost 8%, “ The wood fuels have never been this high”.
In Sweden, the power target by 2040 is to run on 100% renewable electricity. Today, according to Swedish Statistics, over 54% is already generated by renewable energy. Wood related energy sources account for over 32% of the national energy supply or 8% of the European Union. According to statistics, 45% of homes in Sweden are heated by wood products. Just like in Finland, Sweden requires heating 9 months of the year.
The same situation is observed in Norway, where wood is the most important source of energy with over 60% of homes using wood stoves.
With the coronavirus pandemic, wood for heating are considered a necessity product and is being successfully exported, imported and sold, without any trade interruptions or barriers.
12-Month Firewood Plan
For over five years the 12-month firewood plan has been paying a fixed interest (on a quarterly basis) to airline pilots, ship captains, medical professionals and other professionals. Click here to read moreabout the company.
Interest rate: 8.5% interest p.a. paid every quarter to your bank account
Minimum investment: 25,000 USD/EUR/GBP
Term: 12 months (with an option to renew)
No management or admin fees
US citizens and residents are eligible
Many wealthy families passed on to the next generations just that. They placed their funds into fixed income financial instruments on which they lived off.
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