Welcome back to the Firstline Securities Blog. Here’s some insight from our head of Wealth Management, Maxine King.
Welcome back to the Firstline Securities Blog. Here’s some insight from our head of Wealth Management, Maxine King.
“Wake up my people, wake up and give a shout
Wake up my people, know what life’s about and…
Wake up to the needs of all the ones who suffer sorrows
Wake up promise now to do your best to change tomorrow
Wake up my people and open every door
Wake up it’s time now, love my people evermore”
Some of us may be very familiar with the words to that song. A spiritual call to action, a plea to end solipsism, narcissism and selfishness and to be more attentive to the people around us.
The reality is that most of us become so involved in the exigencies of daily life, that we generally neglect the ones around us who are quietly begging for our attention, our support, our generosity. Many of us also neglect ourselves.
Mother Earth has spoken and she is trying to help us along. The coronavirus has re-surfaced in an indiscriminate, invisible, unpredictable form that has brought fear, panic and uncertainty to the entire world. This “Black/White Swan” has wiped out trillions of dollars of the spoils of the wealthy in one fell swoop, ground economies to a halt and rapidly attacked the most vulnerable amongst us.
Though not egalitarian, it has made us all human again since we all now face the same vulnerabilities regardless of locality, ethnicity, religious background, power, wealth. It intends to make us all humble again.
Times like these call for sober reflection as to what is really important and who matters most. For each individual the pecking order will vary but there are similarities which conflate because we live in a society with shared cultural norms, acculturations, appetites and of course, a communal environment.
There is no doubt that this coronavirus will have a monetary and fiscal impact on our individual lives, and on our economy. But what about the social costs? Those unquantifiable costs which significantly impact the underpinnings of our society.
The experts advise that COVID-19 is the third coronavirus that has affected humans after SARS in 2002 and MERS in 2012, and because they do not understand its epidemiology, its immune response and what is scientifically protective, this is why the mitigation method is primarily isolation and social distancing. The truth is that human/animal trials, candidate trials and efficacy trials take a long time before they get to the manufacturing of safe vaccines that will work well in all demographics. Research shows that this can take up to 15 years, 5 years as in the case of SARS, or perhaps 18 months at the very least in the current environment.
Therefore, the need to preserve life remains a Number One priority across the globe and each territory has instituted its own measures to contain the spread of this deadly disease. In so doing, what has come to the fore are significant social realities:
“Even in our families, people are waiting
Someone might be crying, waiting hopefully
Wake up to my people, dry their tears of sorrow”
The fact is that the social costs of this pandemic will mount in tandem with the mounting financial costs and losses resulting from closed businesses, pay cuts, job cuts and general inability to make ends meet. This does not mean all doom and gloom as there are also social benefits attached to this situation:
There is opportunity in adversity. This virus has afforded us the time, the discipline and the patience to commence looking inwardly at what we can do differently for ourselves, our families, our communities and our nations. The coronavirus is teaching us about the need to respect, to support and to cooperate with each other. It is teaching us about true love and understanding and about humility. Suddenly, the most under-recognised people have become so important: the garbage collectors, the cleaners, the grocery workers, the hospital orderlies and the postal workers.
Now is the time to re-design and re-imagine the foundations of our economy. It is the time to give other sectors a chance to flourish; our designers, our film producers, our pan and kaiso artists and our micro enterprises. Now is the time to focus on domestic food production, aquaculture, vertical agriculture, the wire benders and the artists who remain dormant and awake only at Carnival time. Now is the time to show our resilience as a people.
Now is the time for companies to reassess their business models, their organisational structures, how they use technology, their cash management policies, their preparation for contingencies and who and what are their most valuable resource.
Now is the time for us as individuals to focus on what matters most: on the brevity of life, on our preparedness, financial and otherwise, for contingencies and uncertainties. Do we have sufficient savings, insurance and investments to cater for the long-term? Are we treating our neighbours as we would want to be treated? Are we engaging in self-care via good nutrition, exercise, rest and mindfulness? Have we adjusted to what may be the new normal regarding working from home in an honest, disciplined manner which provides value for money?
Ironically, coronavirus’ nomenclature was derived from astronomy, the fact that it has spikes on it, similar in shape to the sun. Whilst it spreads disaster across the world it has also become the shining light that will enable us to change our behaviours, to plan for our future, for contingencies, for uncertainty in a manner that is humane, fair and equitable.