Amid a deluge of news of new protests, rocket launches, and a general
rise in geopolitical tensions, many have forgotten about the pandemic as if it
were a bad dream.
The problem is that it is not out of the question that we will face
another coronavirus in a couple of years, which could again affect the global
financial system, and even BTC ETF approval won’t help.
Given this high-risk factor, researchers have calculated the probability
of a pandemic capable of wiping out all human life, finding it statistically
likely within the next 12,000 years.
Not surprisingly, one of the critical issues discussed at the World
Economic Forum was the threat of a new „Disease X“.
According to WHO projections, it could be 20 times more dangerous than COVID.
What is it?
„Disease X“ is an unknown disease capable of causing a new
pandemic.
Incidentally, preparations for it have been underway since 2018. Had
they not prepared, the likely number of coronavirus victims would have been
higher.
In addition to new strains of COVID-19, there are many dangerous
pathogens and viruses, such as hemorrhagic fevers, Zika virus, Ebola virus, and
so on. And they appear regularly.
In short, it is still being determined which one will force countries to
close borders and reintroduce restrictive measures, but there will be one, and
we must be prepared for that scenario.
How do you prepare for something that has yet to arrive?
Governments, having learned from the bitter experience of coronaviruses,
have realized what measures work to reduce the spread of the virus and ease the
pressure on the health system.
Regarding disease treatments, scientists, in collaboration with
pharmaceutical companies, are constantly researching various viruses to
understand their behavior.
The only catch is that this requires investment and debates about the
emergence of another „Disease X“ will likely contribute to its rise.
So far, however, the shares of Pfizer, Johnson & Johnson, and
AstraZeneca have not reacted much. But things could change quickly if the
epidemiological situation deteriorates instantly.
How can we understand the risk of a new pandemic?
Unfortunately, the average investor does not have many tools to detect
this. It would be best to respond according to the situation, as it is
impossible to be fully prepared for all scenarios.
The only hope is that countries have learned from past experiences so we
can avoid widespread lockdowns and other draconian measures next time.
Still, it may be useful to utilize the volume
indicator to detect a change in market sentiment and thus understand
whether news of another virus discovered is worthy of concern.
This article was written by FL Contributors at www.forexlive.com.
