The complete global financial market is experiencing something it has never seen before. While market impacts and even crashes are nothing new, never before have we seen one that is so expected and well analyzed. Both large banking consortiums and individual investors have had more than three months to slowly prepare and move their money to sectors like online gambling and gaming, or in futures for essential goods like food and medicine.
Results are still coming in, but some of the tendencies are extraordinary and on the verge of unbelievable.
While the market as a whole is rising, micro-investors are experiencing a sort of schadenfreude because of the losses taken by the biggest players who were investing in some rather lucrative and rather risky ventures.
Finally, it doesn’t seem like we are heading for either a market crash or a market revolution, but rather an evolution of what it means to do business and what investors can expect to get in return.
Work from Home, Fun from Home
It was predicted that during lockdown everyone, who can, will switch to working from home, but few predicted just how much of our entertainment will turn domestic. The added accessibility has not only drawn those who were otherwise active with brick and mortar entertainment, but also those who have found more time due to the lack of a commute. These two additional hours may not sound like a lot, but when applied to the entire US population it has created a market worth roughly $1.1 Trillion for those who can tap into it.
With a share that large, it isn’t affecting only the specific niches like iGaming and video streaming services, but also auxiliary industries made to market and promote these products. There are whole professional websites dedicated to letting players make an educated choice when it comes to online gambling.
Turning back to Essentials.
With bullish investors focusing on emerging industries and technologies, bearish ones are going in the opposite direction. Commodity goods like food, medicine, toiletries, and similar products that are used every day by most consumers are experiencing a steady rise in both consumption and investment.
While this market is not as lucrative as online gambling and gaming, it still offers a steady base and hedge for many investors and is currently bringing increased yields propped by the influx of new money into the system.
iGaming is a Major Player
Online gambling was on the rise even before lockdowns began, and the operators are now experiencing a golden age. Stocks are in a constant upward spiral and investors are flocking to existing businesses, start-up companies, and even Greenfield investments.
While it was predicted for this market to reach $50Bn by the end of 2020, it has already surpassed it even in lower estimates by hitting the $60Bn mark in May of the year. On the higher side, some analytics even suggest the size of the market to be as big as $94Bn, if all additional services are included.
Even though this is still less than the video game market, valued at ~$150Bn, it will probably rise at a steady pace even once the lockdowns have ended, as many players are reported to prefer the new type of service over the old-fashioned casino lights.
New investments in the industry are already spurring advancements in technology. These are simultaneously focusing on better player immersion and experience, as well as a more efficient monetization model for these companies.
Because of the high degree of customer trust due to online reviewers and social media, it is probable that iGaming will dominate the online gambling market in the very near future.
Volatility might Be Good for Business
While not so much ironically as coincidentally, this type of predicted volatility might be good for the market as a whole. Even though big movers and shakers have experienced significant losses and are even requesting the administration for bailouts, small investors have more than picked up the slack.
Numbers suggest that the diminishment of major players gives rise to those wanting to take their place and pushes experienced investors into more risk than they used to take on. This fluctuation is serving as a good fertilizer for the market, which is trading at an unprecedented pace.
Although it is still too early to celebrate, it seems like the big winners of this pandemic and lockdown won’t be the same people we are used to seeing, but rather the small investors and consumers enjoying the new products. This might be strange, but few can argue that it is not a good thing.