Page 10 - BEST MAGAZINE Winter 2019-2020

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ECONOMY AND FINANCE
PAY ATTENTION TO YOUR PENSION !
PREDICTIONS FOR 2020*
BY DIEGO F. GONZALEZ
1. ECONOMICS:
1.1. Neither the Federal reserve nor independent economists are forecasting interest rate changes during 2020.
1.2. The expected slowdown in the markets and the fear of recession is predicted to be delayed by Mr. Trump doing anything necessary to ensure reelection in the US elections.
1.3. Europe will aim for economic stimulus, but its banks will cut thousands of jobs to shore up profits.
1.4. Online banking will intensify.
2. CAR INDUSTRY:
2.1. Tesla’s (electric car maker) market capitalization value ($89 billion) is higher than Ford ($37 billion) and GM ($50 billion) combined, despite being only in the market 16 years with sales of 367,500 cars compared to 2.9 million and 1.36 million from GM and Ford respectively.
2.2. Tesla Gigafactory 3 in Shangai, China, will produce batteries and electric cars capable of manufacturing 250,000 vehicles in 2020.
2.3. THE FUTURE:
2.3.1. The disappearance of automobile repair shops: the gas/diesel motors have more than 20,000 single parts whereas electric motors only have 20. These motors are usually lifetime guaranteed and have the ability to be replaced in 10 minutes via robotic assistance.
2.3.2. Thedisappearanceofgasstations.
2.3.3. Urban cities will have to evolve: the disappearance of parking lots, as reduction of private vehicles will occur.
2.3.4. Cleaner air.
2.3.5. Reduction of traffic accidents: 1.2 million people currently die yearly in deadly traffic accidentes.
2.3.6. Insurance companies will have to evolve: reduction in automobile accident claims.
3. CLEAN ENERGY:
3.2. An increase in a greener planet mentality individually and collectively.
3.3. THE FUTURE:
3.3.1. Middle Eastern economies must evolve: no more coil or gas/petroleum industries in the world.
3.3.2. Household will produce energy in the daytime and store the remaining. This can be used to sell to the grid to industries with a high energy demand.
4. INDUSTRY:
4.1. Technology will force out many industries, such as Kodak in 1998 where they had 170,000 employees and sold 85% of the photographic paper produced in the world, however it only took a few years to force them out in the digital era.
4.2. Entertainment:
4.2.1. People will spend US $2.3 trillion in
2020. 3.1. Political tensions between America-Iran
and Libya-Venezuela will produce oil price disruptions. The oil price will be close to $63/barrel.
4.2.2. Internetvideowilloutshinepay-TV.
4.2.3.Streaming services competition will increase: Netfilx, Amazon Prime, HBO now, YouTube TV, Disney Plus, CBS All Access, DirectTV Now, Hulu, Showtime.
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