Coronavirus pandemic is one of the turning points of every industry including the finance industry. The global economy has been largely affected and people are still struggling to find out ways to cope up. The sudden stoppage of commerce actually stopped all travel, dining, and retail. Actually the tenure of covid 19 has made social distancing a norm which is opening doors to the life of Professional Sports.
With the ever-growing masses getting interested in Professional Sports along with financial markets and retail trading on exness in every possible way is actually helping offshoot industries to bud in the entire process. One such industry is actually the industry of ballooning. One such industry is betting on sports. In 2018, betting of sports has been legalised by countries outside of American and Nevada Sportsbook. Almost 22 billion dollars were handled in betting and there were only 1.5 billion dollars in revenues. There has been a significant amount of sloshing of capital beyond the financial marketing industry. It has been predicted to grow by 8 billion dollars per year within 2025.
In the year 2020, March the professional sports leagues began to shut down temporarily around the world due to the pandemic situation, there was a change in the financial industry. The liquidity of 22 billion dollars bet since 2018 by the bettors had to be utilised in some way to find the equilibrium in the financial industry. In March 2020 there was a dry period for the markets of capital and there was starvation of cash by the companies. There were signs of bankruptcy which made the industry face a vulnerable period. That was the exact time when the Federal Reserve started flooding the markets with the capital of over three trillion dollars and the US treasury actually made announcements of relief programs for all the individuals and the businesses.
The activities of the skilled sports leagues were actually closing and the capital movement was suppressed which, combined with the Quarantine period, was actually uplifted and supported by the fresh capital which was poured into the market. The people received the benefits of unemployment and at least 20 percent of the fund was recirculated to the market altogether.
Due to the pandemic situation, there has been a shift from investment to savings. People have psychologically developed to save more and invest less. The flooding of the industry with the capital has rekindled the animal spirits and the government is actually trying hard to drive the people to pay and invest more rather than save to uplift the economy as a whole. Lots of support is provided to the people to actually uplift their thoughts and pursue them to invest more. This was a major step to revive the economy that was being affected vastly due to the pandemic as a whole.
The open Spigot by FED has been a sales executive dream. The circumstances in the market have actually led to the new surge of retail traders into the financial markets and there has been a very famous outlet, Robinhood. Robinhood is actually a commission-free broker app for trading. There has been significant upliftment from 10 million to 13 million users during the time of the covid 19. Almost all the new users had a median age of 31 years and most of these users were actually new to the industry. There are multiple other new brokers like TD Ameritrade, Charles Schwab, and Interactive Brokers. There were over 1 million new accounts opened in this phase and the situation has been a boon for many retail traders. Thus, the rise of retail trading has generated a new mania among people across the world.