The three-body problem shows us why we can’t accurately calculate the past – Universe Today

Our universe is driven by cause and effect. What happens now leads directly to what happens later. Because of this, many things in the universe are predictable. We can predict when a solar eclipse will occur, or how to launch a rocket that will take a spacecraft to Mars. This also works in reverse. By looking at events now, we can work backward to understand what happened before. We can, for example, look at the motion of galaxies today and know that the cosmos was once in the hot dense state we call the big bang.

This is possible thanks to a property of physics known as time symmetry. The laws of physics work the same way regardless of the direction of time. If you watch an animation of an orbiting planet, you have no way to know whether it is running forward or backward. The causality of physics allows for causes to be effects and effects to be causes. There is no preferred direction for time.

But hold on, you might say, what about thermodynamics and entropy? My coffee always cools down while sitting on my desk, and if I drop my mug on the floor I cant unshatter it. Doesnt that give time a unique direction? Not quite.

Thermodynamics is statistical in nature. Entropy will indeed tend to increase over time, but thats because there are many more possible disordered states than ordered ones. Thats a bit of an oversimplification, but its good enough for everyday life. If I toss a handful of sand in the air, the grains will almost certainly land on the ground in some random pattern. However, there is an infinitely small chance that they land in a perfect circle. The odds are so tiny we will never see it happen, but it isnt impossible. Chaotic systems are nearly impossible to predict, but we could (in principle) predict them with enough information. Because of time symmetry, we could also work back to the initial state of a chaotic system.

This is known as retrodiction. It is the ability to predict past events from current ones, and it lies at the heart of fundamental physics. One thing weve learned about quantum physics, classical physics, and thermodynamics is that they all come down to information. The state of any system contains all the information you need to predict what will happen next. This means that information is a conserved quantity, and like energy cant be created or destroyed.

At least thats what we think. One of the big unanswered questions is whether or not conservation of information applies to black holes. If I toss my personal diary into a black hole it can never escape. Once it crosses the event horizon, the diary can never escape. Does that mean my deepest secrets are forever safe? This information paradox has huge implications for quantum gravity, but thats a story for another time.

But could retrodiction fail even without invoking event horizons or quantum physics? Since classical physics is deterministic, retrodiction should always be possible. But a new study argues against that idea.

In this work, the team ran computer models of three massive black holes in a gravitational dance. With each simulation, they shifted the initial positions of the black holes to see how similar or different their motions were over time. This kind of three-body problem is a classic example of a chaotic system. There is no exact solution for three-body problems, so its a great way to study how predictable a system might be.

As you might expect, when you vary the initial conditions you can get very different results. Small differences lead to large ones over time. Weve known this about chaotic systems for decades. But the team found that the tiniest shifts can lead to big variations. When they made the shifts as small as a plank length, most of the simulations remained really consistent, but about 5% of them still varied widely.

This is interesting because a Plank length is about the limit of scale for quantum systems. Smaller than that and known laws of physics break down. Since the bodies in the mode are large black holes, this isnt some effect of quantum uncertainty. It also isnt some uncertainty in their simulation. The unpredictability of this three-body system seems to be intrinsic.

So we cant always predict the future. What else is new? But since the laws of gravity are time-reversible, this also means for some systems we cant know their origin. Not even in principle.

Before you think this throws all of science out the window, keep in mind that this is about the limit of what can be known. We can still understand the history of the universe by what we see today. But this could mean that information isnt always conserved, even in a simple classical system. If thats true, it could change the way we understand the most fundamental essence of physics.

Reference: Boekholt, T. C. N., S. F. Portegies Zwart, and Mauri Valtonen. Gargantuan chaotic gravitational three-body systems and their irreversibility to the Planck length.

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The three-body problem shows us why we can't accurately calculate the past - Universe Today

3 money moves one self-made millionaire is taking in response to the coronavirus pandemic – CNBC

In 2010, Grant Sabatier joined the FIRE (financial independence, retire early) movement, which embraces the concept of saving the majority of your income in your 20s or 30s so you can retire in your 30s or 40s.

In just five years, he saved over $1 million, enough to consider himself "financially independent," which gave him the freedom to start living a more entrepreneurial life. He founded the site Millennial Money, which helps others fast-track financial independence and reach early retirement, and he wrote the book,"Financial Freedom: A Proven Path to All the Money You Will Ever Need."

While Sabatier, who now lives in New York City with his wife, has a big cash cushion to fall back on, even the self-made millionaire is feeling the effects of the coronavirus pandemic, which has put major stress on the U.S. economy.

Here are three changes he's made with his money in response to the pandemic and its crushing economic impact.

Most financial advisors say to leave your investments alone in times of uncertainty and when the market is volatile.

Sabatier is following that advice for the most part: "I did sell some of my Amazon stock and diversified my portfolio a little bit." He wasn't planning on doing any rebalancing, "but I was a little overexposed in individual equities," he notes.

In general, though, he's keeping his hands off of his investments, staying the course and sticking to his long-term plan. Ignoring the urge to panic and pull out of the market is easier said than done, even for Sabatier: "I have to keep reminding myself that you only lose money when you sell, and so the losses themselves haven't been realized."

As a precaution, "I took out 10 grand in actual cash because I think there are certain times where ATMs could get frozen or a bank could stall," says Sabatier. "Having actual cash, and money across a couple of different banks, I think is a wise decision."

Other experts arequick to reassure consumers that if your money is parked in a bank insured by the Federal Deposit Insurance Corporation(FDIC), it's safe and there's no need to cash it out.

It doesn't hurt to have money across different accounts, though. Financial planner Scott Cole recommends having three to six months' worth of living expenses saved across two different accounts. Keep about $1,500 in the savings account tied to your primary bank and put the rest in a high-yield savings account, where it will likely earn you more in interest, he says.

If you need to dip into the $1,500 for an emergency, it will be readily accessible. Then, you can replenish the amount you used with savings from your high-yield account.

Sabatier used to check his net worth every day. It was a way to monitor his financial progress and stay motivated to reach his goals.

While he has a substantial cash cushion and isn't worried about his financial situation right now, "I'm human, so when your net worth drops 30% in a matter of 10 days, it sucks and that hurts and you feel it."

That's why he's putting the habit of looking at his account balances on hold: "I know things are going down." He's accepted that, for the time being, he's in "a preservation phase, and not a growth phase," but trusts that the markets will bounce back. When they do, he'll start checking his net worth again, but in the meantime, he doesn't need the stress and anxiety that comes with seeing your numbers drop.

Another way to stay focused on the long run may be to tune out some of the daily headlines. That's what investing legend Warren Buffett does. It helps him focus on where businesses will be five, 10 and 20 years from now, which is really what matters.

"I don't think I can make money by predicting what's going to go on next week or next month," Buffett told CNBC's Becky Quick. "I do think I can make money by predicting what will go on in the next 10 years."

Don't miss:Here's what you should do with your savings during the coronavirus outbreak

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3 money moves one self-made millionaire is taking in response to the coronavirus pandemic - CNBC

Self-made millionaire says the concept of retiring early ‘will disappear’ due to the coronavirus pandemic – CNBC

Americans are starting to feel the effects of the coronavirus pandemic, which has left few industries untouched. Some employees are already out of work and millions could end up losing their jobs in a potential recession.

The pandemic could even wipe out what's become known as the FIRE (financial independence, retire early) movement, which embraces the concept of saving the majority of your income in your 20s or 30s so you can retire in your 30s or 40s.

That's according toGrant Sabatier,Millennial Money founder and author of "Financial Freedom.""I think the whole idea of retiring early ... will disappear because of this," he tells CNBC Make It. "It's just not going to be as easy, even for people who have been saving up, and it's not going to be as attractive of an idea."

Sabatier started his own financial independence journey in 2010, before the movement really took off. He saved over $1 million in five years by launching a bunch of side hustles and setting aside upwards of 80% of his income.

Despite the movement's growth over the past decade, Sabatier says the concept of retiring early has already started to lose steam among younger generations. And the impact of the COVID-19 pandemic on the global economy and markets could be enough to eliminate the movement altogether, he says.

But that wouldn't necessarily be a bad thing, he says. "I think that idea of retiring early is, thankfully, disintegrating in the sense that, work is an important part of life. Work is healthy," he explains. "Doing something that you're passionate about is healthy. And money is often a byproduct of the things that we do to create value in the world."

Work is healthy. Doing something that you're passionate about is healthy. And money is often a by-product of the things that we do to create value in the world.

Grant Sabatier

Founder of Millennial Money

Sabatier, who became a millionaire before 30, didn't work a handful of side gigs and saveanextremepercentage of his income to stop working and settle down. For him, it's been less about retiring and more about "having freedom and options and choices," he says.

If you're intent on retiring early, use the extra time you may have right now to reflect on why, he suggests. "I often see people who want to retire early because it's something else to chase it's another trophy to get. When, in reality, so much of what they want they already have. Or, they're much closer to what they want than they realize.

"In this time when we're all quarantined and have a lot of time to think, think about why you really want to retire early. Do you still want that amidst the increasing uncertainty of our times?"

Sabatier encourages people still interested in the movement to focus less on the "retire early" part of FIRE and more on the "financial independence" aspect: "At its core, it's always been about using money to build a life you love and being intentional about your spending so that you have more time and options in your life."

Don't miss:Financial planner: Here's when you should temporarily stop saving for retirement during the pandemic

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Self-made millionaire says the concept of retiring early 'will disappear' due to the coronavirus pandemic - CNBC

Prince Harry and Meghan Markle Could Have a ‘Very Tricky Path’ to Financial Independence After Coronavirus Outbreak, Source Claims – Showbiz Cheat…

When Prince Harry and Meghan, Duchess of Sussex decided to stepback as senior members of the royal family, their main goal was achieving financialindependence from the crown while still supporting Her Majesty, QueenElizabeth.

But their split from the The Firm occurred long before thecoronavirusCOVID-19 absolutely demolished the worlds financial health in a matter ofweeks. While Meghan and Harry were probably feeling confident about makingmoney before, there is a significant lack of speaking engagements currently.

Suddenly, the prospect of making money isnt so simple forthis former royal couple.

The Duke and Duchess of Sussex essentially wantedto pick and choose which parts of the royal life they participated in. Theywanted to retain the good parts, like money, power, and prestige, while rejectingtheir least favorite aspects, like participating in the Royal Rota and remainingpolitically neutral.

It became quickly apparent that this approach was nevergoing to work Harry and Meghan were free to leave if they wanted, but theycouldnt just create royal roles as they wished. Queen Elizabeth sent thecouple words of encouragement but remained firm on her stance. They couldntuse the word royal in their branding, for instance. And yes, theyd have topay their own way.

That seemed easy enough when they first quit Harry evenlined up a high-profile speaking engagement at a JP Morgan Summit in February.But now events such as this have been canceled indefinitely, leaving Harry and Meghanstuck withoutan income stream.

Though it seems that way now, the coronavirus pandemic wontlast forever and life will eventually return to some kind of normal. However,financial ramification from business shutdowns that go on for weeks or monthscould wreak havoc on the economy. No one knows what will happen next.

A palace insider told U.K. based broadcaster Neil Sean thatPrince Harry is keenly aware how much the pandemic hasaffected his plans. The worldwide health crisis has plunged the worldinto a financial climate unheard of before and the opportunities for companiesto waste cash by booking celebrities to speak at conferences [arent thereanymore], said Sean. Now it could be a very tricky path to becomefinancially independent.

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These are uncertain times. And now, more than ever, we need each other. We need each other for truth, for support, and to feel less alone during a time that can honestly feel quite scary. There are so many around the world who need support right now, who are working tirelessly to respond to this crisis behind the scenes, on the frontline, or at home. Our willingness, as a people, to step up in the face of what we are all experiencing with COVID-19 is awe-inspiring. This moment is as true a testament there is to the human spirit. We often speak of compassion. All of our lives are in some way affected by this, uniting each of us globally. How we approach each other and our communities with empathy and kindness is indisputably important right now. Over the coming weeks, this will be our guiding principle. We will be sharing information and resources to help all of us navigate the uncertainty: from posting accurate information and facts from trusted experts, to learning about measures we can take to keep ourselves and our families healthy, to working with organisations that can support our mental and emotional well-being. In addition, we will focus on the inspiring stories of how so many of you around the world are connecting in ways big and small to lift all of us up. We are all in this together, and as a global community we can support each other through this process and build a digital neighbourhood that feels safe for every one of us. We look forward to sharing more over the days and weeks to come

A post shared by The Duke and Duchess of Sussex (@sussexroyal) on Mar 18, 2020 at 8:17am PDT

Unlike so many other people, Harry and Meghan are not in anydanger of losing their homes or not being able to put dinner on the table, eventhough theyre losing income in the coming weeks. Both have a healthy cushionof funds to fall back on if this pandemic drags on for several months. At the veryleast, they should be putting their multi-million dollar house hunt on hold.

The Duke and Duchess of Sussex have been using Instagram to spread messages of positivity and hope during the crisis. They encouraged fans to take care of their mental health in the days ahead. With everything going on, its a lot to take in. Many of us may feel confused. Or alone, or anxious or scaredand in isolation, some of us may just feel bored, or that you dont know what to do with yourself without your normal routine. Its perfectly normal to be feeling any of these things, they wrote.

But heres the good thing (because right now we need to hear good things, right?), they continued. Yes, there is isolation and physical distancing, but there doesnt have to be loneliness. They went on to share some resources to help fans survive social distancing.

These royals have no idea how coronavirus will affect their future. But theyre hoping to come out stronger than before.

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Prince Harry and Meghan Markle Could Have a 'Very Tricky Path' to Financial Independence After Coronavirus Outbreak, Source Claims - Showbiz Cheat...

How To Use The COVID-19 Shelter In Place Orders As An Early Retirement Test-Run – Forbes

After Tanja Hester retired in 2017, she spent the next couple of years traveling, enjoying the outdoors near her Lake Tahoe home and writing a well-received book on the tactics to retire in your late 30s or 40s. Despite all this activity, as the world shelters in place in an effort to fend off COVID-19, or the novel coronavirus, Hester has a piece of advice for those that hope to retire one day at an extremely young age: Use this time to practice.

If youre struggling with the isolation or, for some, an increased amount of free time, its not any better when you leave the job and theres no structure at all, says Hester, author of Work Optional: Retire Early The Non-Penny-Pinching Way, who also blogs about her retirement life at Our Next Life.

For many employees, theyre dealing with working from home for the first time. The inability to leave the house has left millions feeling the impact of the isolation that can typically accompany a work-from-home lifestyle. But its that isolation that those who retire early have to prepare for.

With sheltering in place orders spreading across the country, the isolation can stress test your ... [+] notion of early retirement.

Only about 8% of retirees step away before their 50th birthday, but the past decade, along with a bull run that finally met its end in March, had given rise to the Financial Independence Retire Early (FIRE) movement. The notions within the group, super-saving their way to retiring as fast as possible, also meant you would have a lot of time to deal with your post-work life. While some may dream of flying off to far flung places, many others often use the tactics simply to escape the nine-to-five without a plan for what their days will look like once they leave the structure of a job behind.

While it might be difficult to find the silver lining while sheltering in place as dread fills the air over health and economic concerns, for those that have long sought early retirement, you can use the time as a wakeup call, says Hester. Isolation is part of the equation when you step away from the job at an extremely young age; this is an unusual chance to plan for it now.

Check in on your relationship

If you and your spouse spent the past week barely able to stand the sight of each other, then its time to work on the relationship, says Hester.

If both of you plan to step away from the job, then once that occurs, youll have more and more time with each other. For some relationships, thats a good thing. For others, it can draw out problems that already existed. Early retirement isnt a cure-all for divorce.

For Hester and her husband, Mark Bunge, it took them time to get in a routine that worked for both of them. They found that when they take trips, for instance, its best to keep them to four weeks at a time. Since they have their own hobbies, the length allows them to experience a new world, but then gets them back home to enjoy their individual pursuits.

He doesnt always want to do all the things I want to do, says Hester. But since theyre no longer a scarce resource to each other, Hester added, it required creating a new rhythm in their relationship to ensure they spend enough time together without stepping on their personal hobbies.

Tanja Hester retired at 38 to travel and write a book. It's the inability to handle isolation that ... [+] she finds ruins many early retirements.

The key to all of it, however, was that they discussed early retirement and savings strategies prior to stepping away from the day job. It wasnt one person leading the march, but a duel effort.

If youre pursuing early retirement and find all the time with the spouse confounding now, talk to each other about what you each imagine life like, once you no longer work. What do you want to do alone? What do you want to do together?

Allow the life vision to drive the money piece, added Hester.

Ensure isolation isnt everything

Most people dont dream of lounging around their house all day and eating beans and rice for dinner every night, so in many ways, the sheltering in place isnt the ideal test run. But it can provide you with clarity, if you realize that you dont know what you would do on a day-to-day basis.

Its important to remember that most of your friends arent likely pursuing the same goal, so you cant hang out with them each week just because youre now free to do what you want.

Most people come to early retirement, reacting to something, said Hester. For some its burn out from the job. For Hester, it was due to a genetic disability that could limit her chance to ski or hike in the future. People know they want freedom from the day job. Theres less thought to what do I want to be doing, she added.

Instead, youll need to build your own community, one that you can go to during the week. Will you volunteer? Will you take a part-time job working as an adventure guide? Will you start a passion project?

Whatever the case, you can take steps while in isolation today. You can take a class in an area you might want to pursue, sign up for volunteering for once the COVID-19 scare is gone, or launch that passion project. Do you enjoy the thought? It will give you a sense if you need to delve further into developing your post-work goals.

Find your new normal

No matter whether youre seeking an under-50 retirement or simply trying to adjust to a new work style, its about finding a normal that works for you.

For Hester, her schedule took shape as she had more time to let her body drive what and when she wanted to do certain things. Now, her mornings typically start slow, as she takes her time adjusting to the day.

In the afternoon, she will work on something, whether its her podcast, the blog, volunteering or even planning a trip. Then in the evening, its when she and her husband goof off.

A similar back-and-forth takes place during times when the market isnt humming, like the correction weve now entered. It requires eating out less or canceling trips. Its similar to right now, she added.

With the markets down, it requires adaption for those that hope to live on a portfolio for forty or more years. That might mean cutting your own trips or reducing your entertainment budget one year, leading to more time around the house.

In those cases, you have to adjust, just like youre hopefully doing by sheltering in place. If you cant, then it might mean saving more, ensuring your retirement life doesnt demand as many conditions.

Related: Your Money And Coronavirus: A Financial Protection Guide

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How To Use The COVID-19 Shelter In Place Orders As An Early Retirement Test-Run - Forbes

Welcome to the March issue of Voxs The Highlight – Vox.com

FIRE which stands for Financial Independence Retire Early is a niche financial planning movement thats resonated with Americans in their 20s, 30s, and 40s, who see FIREs dogma of extreme frugality as a path to leave the workplace behind.

Now, as the battle against the coronavirus leads to unemployment and economic uncertainty, our cover story looks closely at FIRE, whose followers were often directly affected by the financial crisis of 2008 and who by and large believe theyre girding themselves for the economic realities of the future.

But FIRE remains strikingly improbable for most Americans. How can anyone dream of quitting their job when many of us can barely stay afloat? asks Stephie Grob Plante.

Also in this issue, we go deep into the forests of Ecuador to meet Gordon Hempton, an acoustic ecologist trying to convince the world to preserve quiet. Today, noise is linked to myriad health problems and is changing animals behaviors. If were being suffocated by our own din, the first quiet park on the Zabalo River promises to show visitors a different way to live.

Later, we explore the myth of the Midwest, and finally, cartoonist Terry Blas returns with a personal comic about finding pride in multilingualism in a time of xenophobia.

Financial Independence Retire Early, with its emphasis on extreme frugality, grew in popularity after the last financial crisis. But can the movement prepare its followers for the next one?

by Stephie Grob Plante

Deep in the forests of Ecuador, preservationists have created the first quiet park, with hardly a peep from humankind. Now theyre hoping the tourists will come and spread the message of quiet.

by Sam Goldman

How the Midwest became a symbol of whats ordinary, wholesome, and practical and why this idea endures.

by Phil Christman

Answering a call from Mom in public suddenly takes on new and nerve-racking meaning.

by Terry Blas

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Welcome to the March issue of Voxs The Highlight - Vox.com

The Best Strategies To Reach Financial Freedom – ETF Trends

By Jon Dulin

There are multiple roads to financial freedom but are you driving in the right direction?

The most important step to financial freedom is understanding what that freedom looks like to you.

It might seem like an unnecessary question but too many people follow the drumbeat for financial independence only to give up in frustration.

If you set out on a road trip with no destination in mind, youre going to run out of gas and get stranded!

Besides just defining that goal so you know in which direction to drive, a lot of people have a conception of financial freedom that may not be as good as they think.

For many people, the idea of Financial Independence, Retire Early (FIRE) is having enough money to quit their job and never work again.

OK, so you ditch the rat race and never work a day againthen what?

At best you become a sun-burnt alcoholic on some far-away beach.

Thats going to get old quick.

You need a purpose, something that gives your days and your life meaning.

For me, financial freedom was enough money that I could devote my time to developing my own business.

It was not worrying about money even when my online assets werent quite generating enough cash flow to pay all our bills.

Now that the business generates tens of thousands a month, financial freedom is doing what I love and never having to worry about money again.

Whether its being able to devote yourself to a charitable cause, running your own business, a hobby or whatever you choose, think about what financial freedom really means to you and about what youll do when you dont HAVE to work for the money.

Knowing where that destination is, you can find it on the map and start planning your course.

Ive found three roads to get you there.

Once youve figured out where you want to go, its time to get in the car and drive. And theres no way to FIRE thats more popular than investing.

Investing is also the easiest road to your financial independence. The boom ininvestment appshas made it easy to open an account and put your money to work.

Note that I said the easiest road, not the shortest.

Investing $6,000 a year and earning the long-term market return of 8% annually, it will take you 35 years to reach that seven-figure payday.

Even if financial freedom means a slightly smaller bank account, investing is like driving to your financial independence in a 92 Camry.

That doesnt mean you should give up on stocks and dump all your money in the other two ideas well talk about next.

Part of the beauty of the other ways to financial freedom is they dont cost a lot (or anything) to get started. That means you can still put your savings in stocks to watch that slow-ride to financial success.

If you decide to invest that hard-earned cash, remember these ideas:

I truly believe that real financial freedom is getting paid to do something you enjoy.

I love growing my online business, talking about financial success and goals, and making that personal connection through the YouTube channel.

Now that doesnt mean its all rainbows and unicorns.

I dont always jump out of bed in the morning and there are some parts of the business that still feel like a job.

But its a whole lot better than the feeling of being stuck in a job I didnt like, feeling like I had no control over my financial future and that my work didnt matter.

In fact, I enjoy running my online business so much, I dont really even think about retirement anymore. I cant imagine not doing this at least for a few hours every day.

And it all started as a side hustle.

Trying to find your side hustle idea? Try these steps:

From consulting or freelancing to writing books, you can make money on any idea.

Dont believe me?

There are 479 video courses on Udemy about solving a Rubiks Cube.

Thats 479 people that are making money from talking about that infuriating puzzle-box of the 80s.

If investing is like driving to your financial destination in an old beater, creating a side hustle is like a Corvette.

Youll still have to work on it and keep it running but it will get you there fast!

Our third strategy to financial freedom, and the favorite for most, is creating streams of passive income.

If you need to get to your financial destination as fast as possible, passive income is like putting the pedal down on a Maserati!

Passive income is money you make without having to do anything after setting it up.

That doesnt mean you never work again. It just means you have an income source producing cash flow while you devote your time to your side hustle or other tasks.

Be careful going after just any idea proposed as passive income though.

As much as I love blogging and creating videos for YouTube, these are pretty far from a passive income source.

The best passive sources are ones that take minimal upkeep or effort after launched.

A few of my favorite passive income ideas include:

Financial freedom isnt a destination you get to overnight.

If it were as easy as a leisurely Sunday drive, we all would have gone there years ago.

Figure out what that freedom really means to you, draw out your map and youll get there sooner than you think.

For many, simply knowing theyre on the right road to financial independence is all the motivation they need to keep driving.

Author Bio:Born and raised in Iowa, Joseph Hogue worked in corporate finance and real estate before starting a career in investment analysis. He has appeared on Bloomberg and CNBC and led a team of equity analysts for a venture capital research firm. He holds a masters degree in business and the Chartered Financial Analyst (CFA) designation. Joseph left the corporate world in 2014 to build his online businesses, first through creating websites and later through YouTube. Booking just $792.41 in 2015 income, hes grown his online assets to an income of $122,400 for the twelve-months to July 2019. Hes published 10 books and has grown the YouTube channel,Lets Talk Money, to over 161,000 subscribers in less than two years.

This article was republished with permission from MoneySmartGuides. View the original articlehere.

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The Best Strategies To Reach Financial Freedom - ETF Trends

Cocooning and lessons from COVID-19 | Community – Dunwoody Crier

In 1981, marketing strategist and trend spotter Faith Popcorn coined the term cocooning. Cocooning was the idea of staying home instead of going out, feeling safe and insulated from perceived danger. In a 1986 piece in The New Yorker magazine, she opined that the concept involves building a shell of safety around oneself. The word is enshrined in multiple dictionaries.

Cocooning, known as the Cocoon Strategy, also refers to a vaccination protocol designed to protect infants and other vulnerable individuals like grandparents from infectious diseases by vaccinating those in close contact with them. A large number of infants are infected by close friends and family, especially the mom.

Cocooning in various forms is de rigueur for the time being, whether required by etiquette, common sense, medical necessity or governmental fiat. With so much shutting down, events and gatherings cancelled, travel deferred, what are we hopefully to learn?

The late Steve Jobs observed, You cant connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.

We might thank William Shakespeare for that elucidation. In Act II, Scene I ofThe Tempest, the evil Sebastian uttered, Whats past is prologue. Jobs and the Bard of Avon understood that whats happened only sets the stage for the future. We have to see the patterns, understand lessons learned, and build the future as we connect the dots.

As investors and planners for our own future and financial independence, we have seen, again, that a bull market can end with blinding speed. We also know that bear markets run their course, as this one will. Many bear slumps are based on negative economic developments. But COVID-19, a classic black swan, landed midst a very strong economy, a plus. A black swan is an unpredictableevent beyond what is normally expected of a situation and has potentially severe consequences.Black swan eventsare characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight. (Investopedia).

This black swan was medical, not economic, but the market tanked because of totally unquantifiable economic fallout, and Mr. Market abhors unpredictability. The consequences have become an economic event, with an overlay of panic given bare supermarket shelves and hours long waits to get into Costco as an indicator.

Because black swans are largely unpredictable, a long term investment strategy should incorporate reserves and the ability to ride out storms that impact equity values. Bull markets in their latter stages are replete with overvalued stocks, and we have seen many market segments move from excess valuations to relative bargains with blinding speed. Market tops and market bottoms are only clearly visible with hindsight, but at some point, relative economic clarity will return as the epidemic wanes and a recovery cycle ensues. How will you frame your investment policy as we recover?

Ebola, SARS, swine flu, Asian flu, avian flu. Pandemics and disease spread are growing threats in our increasingly interconnected, and in many locales, densely packed urban world. In 30 hours or less, an infected traveler can go from one side of the globe to the other. We shall see how effective travel bans and cocooning will be with the current situation. Most flu strains do not disproportionately impact younger people. Older folks, especially, and those with impaired immune systems, can be subject to acute respiratory distress, viral or secondary bacterial pneumonia. A need for more hospital facilities that can handle an influx of seriously ill seniors or other high-risk patients is now recognized. As our population ages and parents and grandparents live longer, the demand for respirators and ventilators could grow given periodic surges of communicable diseases. Government run facilities in other countries have proven less than efficient, something to ponder as we debate national health policy.

Theres danger in being dependent on China for so many important drugs and drug components. Just as we once were held hostage by OPEC, we need more home-grown production independence and diversification of supply chains, not just in drugs, but in numerous areas, including rare earth minerals and key components to electronics and other necessities.

While walking in a park near my home, I struck up a conversation with a young man, late 30s, married with two young children. He and his wife have no wills, no powers of attorney, no basic financial plan. You may worry about global pandemics and your 401(k) while basic planning is incomplete. We often fret over the big picture and things we cant control, as personal and family foundational planning needs are left undone. Think about that

Lewis Walker, CFP, is a financial life planning strategist at Capital Insight Group; 770-441-3553;lewis@lewwalker.com. Securities & advisory services offered through The Strategic Financial Alliance, Inc. (SFA). Lewis is a registered representative and investment adviser representative of SFA, otherwise unaffiliated with Capital Insight Group. Hes a Gallup Certified Clifton Strengths Coach and Certified Exit Planning Advisor.

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Cocooning and lessons from COVID-19 | Community - Dunwoody Crier

Requests for Help Surge from Palm Beach County Residents. United Way and Partners Stand Ready to Meet Basic Needs – The Boca Raton Tribune

$9.5 Million in Requests to Support Nonprofits and Residents in the Wake of COVID-19

Boca Raton, FL Just ten days after launching its COVID-19 Response Fund, United Way of Palm Beach County has seen a tremendous surge in requests from residents looking for help with needs including food, shelter, and access to care.

In the state of Florida, daily claims for unemployment submissions have increased from an average of 700-800 claims per day to 18,000-21,000 claims per day since precautions over the spread of the coronavirus were implemented.

In Palm Beach County, the side effect of trying to flatten the curve of the coronavirus has greatly impacted our local workforce. Many individuals who were gainfully employed, but still living paycheck to paycheck, have been laid off and now find themselves facing sudden economic strain. The 211 Helpline for Palm Beach/Treasure Coast has seen a 200% increase in daily calls for assistance.

As more individuals and families need support for basic needs, United Way of Palm Beach County has also received requests from local nonprofits indicating that they need assistance supporting this influx of clients. United Way has received upwards of $9.5 million in requests from more than 200 local nonprofits.

For the past 90 years, United Way of Palm Beach County has been the trusted source connecting our communitys resources to ensure that residents have enough to eat, a roof over their heads, access to medical care, and other basic needs. In times of crisis, United Ways mission is amplified.

United Way of Palm Beach County is collaborating with other local funders to coordinate efforts and meet emerging needs as quickly as possible. These funders are prioritizing building capacity within our local nonprofits, so nonprofit partners can respond to increasing needs for food, housing, and access to medical care. The nonprofit sector is the safety net for our community in times of crisis. Focusing energy and funds on best supporting nonprofits allows more residents to be served and fortifies our communitys resiliency.

Collectively, United Way and the other six funders have raised more than $3 million dollars. With $9.5 million dollars in funding requests, additional contributions are needed to care for our neighbors in need.

Businesses like Bank of America, Wells Fargo, and Florida Blue have chosen to partner with United Way of Palm Beach County and made generous donations to support ongoing needs of our local community.

To join these corporate leaders and be a champion for our community, donate to the COVID-19 Response Fund for Palm Beach County. Text GivePBC to 41444 or visit UnitedWayPBC.org/coronavirus to make a financial contribution. A gift, no matter how small it might seem, will make a difference and give hope to our community right now.

Residents in need of assistance can reach out to United Ways partner, 211 Palm Beach/Treasure Coast, to be connected with resources and referrals to services. Dial 211 or text your zip code to 898211 for help.

About United Way of Palm Beach County:

For 90 years, United Way of Palm Beach County has been the local leader dedicated to identifying and addressing critical community issues to improve the lives of our residents. We champion community change by strategically uniting key stakeholders and community leaders and investing in successful, sustainable nonprofits. United Way funds 100 local programs and initiatives that provide lasting solutions and measurable results from increasing graduation rates and supporting literacy to ensuring financial independence, promoting healthy lifestyles and ending hunger. When you support United Way of Palm Beach County, you are strengthening your community. To learn more call 561.375.6600 or visitwww.UnitedWayPBC.org.

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Requests for Help Surge from Palm Beach County Residents. United Way and Partners Stand Ready to Meet Basic Needs - The Boca Raton Tribune

MEMO FROM THE PUBLISHER – Thecountypress

This content is being provided for free as a public service to our readers during the coronavirus outbreak. Please support local journalism by subscribing to the The County Press atthecountypress.mihomepaper.com/subscribe/

Even though Gov. Gretchen Whitmers Stay Home, Stay Safe executive order issued on Monday directing the temporary closure of non-critical businesses in Michigan was anticipated by most business owners and managers, it still landed like a gut punch. Especially for those small and medium-sized businesses that had been holding on to employees, creatively marketing their businesses and assuring customers over the last few weeks, as the coronavirus pandemic ramped up, that they were still in business and ready to serve.

Those small and medium-sized businesses are the lifeblood of our communities economies, employing hundreds in each of our small cities, towns and villages and thousands across our county. They pump nearly 70% of each dollar they take in right back into the local economy. Those businesses also provide the opportunity for financial independence, generate job opportunities and create innovation. They are essential to place making in our resurgent downtowns as younger generations discover the pleasures of unique, walkable and friendly retail and entertainment spaces.

Those same business are also the lifeblood of community newspapers like ours. Our papers have a special, symbiotic relationship with our local businesses. We depend on each other they need us to distribute their marketing messages and we need the revenue created by that advertising to fulfill our mission of delivering important news and essential information to our readers.

To say that particular economic exchange, along with commerce in general, has been disrupted is an understatement. In spite of that disruption, View Newspaper Group will carry on with our mission of informing our readers and delivering the marketing messages of our advertisers who are able to continue to serve their customers.

To what degree we are able to continue delivery of the print editions of our free newspapers, like the Lapeer Area VIEW, depends on the duration and severity of our advertising revenue loss. Any interruption in the print editions of our free papers will be temporary. Like all businesses and like all of you, we are taking this crisis one day at a time.

In response to both the health threat of the coronavirus and the resulting economic realities, we have many of our team members working from home, many on reduced hours and have regrettably had to issue some layoffs.

We do plan to continue print production and home delivery of The County Press and our other subscriber papers. If you are a regular reader but not a subscriber of one of those papers now would be a great time to sign up for home delivery. Were offering a special rate that will allow you to receive the paper in your mailbox or on your doorstep or online without having to leave your home.

Our hearts go out to everyone who is enduring any hardship, job loss and anxiety brought on by the COVID-19 crisis. We pray for any who may be infected and their family members. We support and thank our medical personnel and first responders. We salute those who continue to volunteer and serve their fellow humans through nonprofits, civic organizations and individual acts of kindness. We empathize with our friends and colleagues in business and continue to look for ways to support them.

To echo the encouraging words weve heard from many We are in this together and we will get through this together.

Thank you for reading The County Press.

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MEMO FROM THE PUBLISHER - Thecountypress

Kirti Kulhari, Bani J, Maanvi Gagroo and Sayani Gupta Share Experience of Working on Amazon Original’s ‘Four More Shots Please!’ – India West

MUMBAIThe all-girls web dramaFour More Shots Pleaseis set for a second season and the four girls have this to say:

Kirti Kulhari: The concept of the Amazon OriginalFour More Shots Please! intrigued me from day one, and my excitement doubles when we started the shoot of Season 2.

Personally, 2019 has been a milestone for me, starting with the phenomenal success ofFour More Shots Please!and then being part of some of the biggest films of the year, like Mission Mangal. I believe that each viewer will see a little bit of themselves in each character and I really hope they love the second season as much as they did the first.

Bani J.: Ive said this a couple times before, and would like to repeat it because it felt serendipitous to me that I was approached to play Umang. Not because she has an affinity to lift weights, but because of her journey, her story and this unshakable conviction with which she does things in her life: uprooting herself from home, being in love, being herself.

The more time I get to play and be Umang, the more completely I am able to understand and create of her. Its an unusual and quite cool experience for me, being able to play the same character for seasons in a go. Its hard to explain but I think when people watch theyll get it.

Maanvi Gagroo: Life comes to a full circle as we are all set to launch the second season. This show, particularly Siddhi, is very close to my heart, and after shooting for two seasons, I can now understand Siddhi Patel better and why she does what she does. She is a relatable inspiration each time she turns her weaknesses into her biggest strengths.Thisis our labor of love and we are certain that it will receive a lot of love from our audiences.

Sayani Gupta: The second seasonfeels nothing less than coming back in a familiar environment and striving to do something even bigger, better, deeper than the first season. There is a special charm in reuniting and collaborating with the same gang of co-actors, makers and creators.

The first season was infinitely successful and received unprecedented love. It truly is beyond dreams that a forward, rule-bending show likethis receives so much love and craze from fans from all across the board, from all parts of the country and different parts of the world and from all age groups and gender. It also surpassed all preconceived notions that a show made by women on women would be about male-bashing.

Each character had something people could relate to and connect withthe beauty of Four More Shots Please!is that it celebrates four women who are so different, not only in the way they look physically, but also in their personalities. The women in the show are flawed but they completely own it. The show also celebrates women with agency, which is the need of the hour.

Every girl out there should have the right to choose her life-course backed by education and strive for financial independence.The second season will be twice as special. You will see the girls having more fun, the friendship growing deeper and fierceness growing stronger. It is also about accepting their vulnerabilities.I cant wait for the fans who have been writing in everyday for the second season, to watch the show!

The first season gained massive support from the audiences when it was released. The second season will launch Apr. 17on Prime Video in more than 200 countries and territories. The trailer launch will be held Mar. 31.

Synopsis:

Four best friends will cuddle up again and tell the world to sit up and pay a little more attention to what women truly want. Womenwill always be womenthe problems remain simple yet complicated and funny to each other. They will make new mistakes, but love each other little more fiercely and choose themselves over societys expectations.

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Kirti Kulhari, Bani J, Maanvi Gagroo and Sayani Gupta Share Experience of Working on Amazon Original's 'Four More Shots Please!' - India West

Ric Edelman Calls on Congress to Waive Distribution Requirement for Retirement Accounts – Yahoo Finance

Edelman Financial Engines Founder asks for policy shift to help retirees struggling with market volatility related to COVID-19

Congress must pass legislation immediately to waive the requirement that Americans 72 and older make Required Minimum Distributions from their retirement accounts, due to sharp declines in account values caused by COVID-19, demands acclaimed financial advisor Ric Edelman, founder of Edelman Financial Engines, the largest independent financial planning and investment advisor1.

"Millions of retirees are being forced to sell shares of their mutual funds and other investments while stock prices are down 30 percent or more," Edelman notes. "In a great many cases, these retirees dont need the money or can get the income they need from other sources. Forcing them to sell during this market downturn merely to satisfy an IRS requirement is punitive and unnecessary during these difficult times."

Edelman, whose firm is ranked the #1 independent financial advisory in the nation by Barrons, and who was personally ranked by Barrons three times as the nations #1 independent financial advisor, says the situation is made worse by the fact that the calculation for making this years RMD must be based on account values as of December 31, 2019. Current account values, he notes, are far lower now than they were just a few months ago.

"Consider a 72-year-old whose IRA was worth $500,000 at the end of the year. If that account is now worth only $350,000, a retiree is required to withdraw 5.6 percent of the accounts value far more than the 3.9 percent shown in IRS tables," Edelman says. "The markets sharp decline is forcing retirees across the country to withdraw excessively large amounts from their accounts, triggering massive tax liabilities needlessly."

Edelman, recognized as one of the most influential thought leaders in the financial planning field by InvestmentNews, RIABiz and Wealth Management magazines, adds that the problem will get even worse if the financial markets continue to decline.

"Congress must fix the distribution rules for retirement accounts immediately, for the benefit and well-being of millions of American retirees during this economic crisis," Edelman says.

About Ric Edelman

Ric is a financial advisor and has been recognized as one of the most influential people in the financial planning and investment management profession by three leading trade publications: Investment Advisor[1], RIABiz[2] and InvestmentNews[3]. Three times he has been ranked as the nations #1 Independent Financial Advisor by Barrons[4] In 2004, he was inducted into Research magazines Financial Advisor Hall of Fame[5] and in 2019, the Barrons Hall of Fame[6]. In 2017, he received the IARFCs Lifetime Achievement Award[7]. Ric is also a Distinguished Lecturer at Rowan University, an award-winning host of one of the longest-running radio show on personal finance in the country, a producer of award-winning specials for Public Television, and a #1 New York Times bestselling author who has written 10 books on personal finance.

About Edelman Financial Engines

Since 1986, Edelman Financial Engines has been committed to always acting in the best interest of our clients. We were founded on the belief that all American investors not just the wealthy deserve access to personalized, comprehensive financial planning and investment advice. Today, we are Americas top independent financial planning and investment advisor, recognized by both InvestmentNews and Barrons with 170 planner offices across the country and entrusted by more than 1.2 million clients to manage more than $213 billion in assets. Our unique approach to serving clients combines our advanced methodology and proprietary technology with the attention of a dedicated personal financial planner. Every clients situation and goals are unique, and the powerful fusion of high-tech and high-touch allows Edelman Financial Engines to deliver the personal plan and financial confidence that everyone deserves.

For more information, visit http://www.EdelmanFinancialEngines.com and http://www.FinancialEngines.com.

1 Ranking and status for 2018. For independence methodology and ranking, see InvestmentNews Center (http://data.investmentnews.com/ria/).

__________________________

Story continues

[1] The Investment Advisor magazine listing of the Investment Advisor 25 is based on readers opinions and highlights those who are ahead of the pack with their insights, innovation and disruption. Advisors and other industry participants cast about 12,000 total votes for leaders in the following six categories: RIA/Advisory; Independent Broker-Dealers; Custody & Clearing; Portfolio, Investing & the Markets; Politics/Regulation/Compliance; and Fintech/IA/AI. Investor experience/returns were not considered as part of this ranking.

[2] The RIABiz listing of the 10 most influential figures in the Registered Investment Advisor industry is in recognition of notable, driven and influential executives who are advancing their firms and are considered influential in the RIA business. Investor experience/returns were not considered as part of this ranking.

[3] Based on the opinions of the editors of InvestmentNews using the following definition as a guidepost: Those who have conceived new ideas and tools that have propelled the industry forward. Investor experience/returns were not considered.

[4] According to Barrons, "The formula [used] to rank advisors has three major components: assets managed, revenue produced and quality of the advisors practice. Investment returns are not a component of the rankings because an advisors returns are dictated largely by each clients risk tolerance. The quality-of-practice component includes an evaluation of each advisors regulatory record." The rankings are based on the universe of applications submitted to Barrons. The selection process begins with a nomination and application provided to Barrons. Principals of Edelman Financial Services, LLC self-nominated the firm and submitted quantitative and qualitative information to Barrons as requested. Barrons reviewed and considered this information, which resulted in the rankings on Aug. 27, 2012/Aug. 28, 2010/Aug. 31, 2009.

[5] Research magazine cover story "Advisor Hall of Fame," December 2004 (based on serving a minimum of 15 years in the industry, having acquired substantial assets under management, demonstrating superior client service and having earned recognition from peers and the broader community for how they reflect on their profession). Investor experience/returns were not considered as part of this ranking.

[6] Barrons Hall of Fame advisers have been ranked for 10 or more years on the Barrons Top 100 Financial Advisors list. Barrons listings are based on data compiled by many of the nations most productive advisers, which has been submitted to and judged by Barrons. Key factors and criteria for each award include assets under management, revenue produce for the firm, regulatory and compliance record, and years of professional experience. This award is not indicative of this advisors future performance.

[7] Presented by the International Association of Registered Financial Consultants (IARFC). Candidates must hold a professional designation and must have disseminated their comments on financial topics by having them widely published in articles, journals, books, etc. They must have provided outstanding personal service or leadership in the financial services industry. Nominees must have participated in some aspect of financial education to the public or to other members of the profession. Investor experience/returns were not considered.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200324005649/en/

Contacts

Media Amy Conley617-556-2305PRTeam@EdelmanFinancialEngines.com

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Ric Edelman Calls on Congress to Waive Distribution Requirement for Retirement Accounts - Yahoo Finance

Use the lockdown to teach your kids the value of money here’s how – Your Money

If you have school-age children at home, youre probably feeling overwhelmed by the prospect of suddenly becoming a pseudo-teacher.

My Facebook feed has gone into overdrive since the announcement last week that schools were closing, with links to lesson plans, online teaching tools and virtual classroom websites.

Other posts Ive seen, many from teachers and school heads, say parents shouldnt stress themselves out trying to plan an entire school day and that any learning is better than nothing.

I guess the message is to try and get a balance between learning, play and screen time!

However, there is one real life skill you could teach your child during this period of lockdown one theyre probably not taught at school and one that could make a real difference to their life: the value of money.

Research suggests money habits are established as early as seven years old, so the sooner kids are taught about budgeting, saving and managing their money, the better.

Here are some practical ways to teach children about finances while they are learning at home, from Dan Scholey of budgeting app, Moneyhub.

Setting savings goals a new toy, game or even more pocket money earned from extra jobs around the house encourages children to budget and work toward an individual goal.

It can be fun, too which children dont like being set a good challenge? Set a realistic, age-appropriate amount, which they can use to buy something online that that really want.

And once they reach it, not only do they see the impact of saving, but its teaching them to be in control of their money which sets them on the path to financial independence for the longer term.

For children at primary-school age, there are practical ways of teaching basic arithmetic. Take a receipt and ask them to work out how many different combinations of coins make up the amount so 2.50 could be two 1 coins and a 50p coin.

Or put up a snack list with prices (high sugar items cost more, low sugar less) with each child being allowed to spend up to 1 per day. Not only does this teach children the value of money, but its a useful tool to give them a better understanding of budgeting, and given the current circumstances, rationing too!

Engaging children in money is increasingly important as we move into a digital, cashless world. The days where children would be sent a cheque for their birthday are disappearing.

Instead, pocket money is set up as a standing order, children have their own debit cards, or credit cards are given as an eighteenth birthday gift.

Children are used to using apps from a very early age, so it makes sense to utilise these tools to bring money to life and make finance fun.

It might seem strange to talk to a child about pensions, but children can learn a lot about saving from older generations. Speak to a retiree and you might find that there are lessons in money they wish they knew earlier in life.

Could they have saved more had they started earlier? Would they have a bigger pension pot if they had known about pensions from childhood? Its never too early to start saving for retirement, and the earlier in life people know about it, the sooner they can start to prepare.

It would be a mistake to underestimate childrens ability to understand and engage with finances. Stereotypes about young people wasting their money on pointless meals and beauty products get in the way of teaching them positive messages. Why cant they buy that expensive coffee or avocado toast, as long as theyve budgeted it effectively?

While they cant yet start investing, they can change behaviour toward budgeting and saving.If you have a Junior ISA for your child, its worth letting them see it so that they can see a longer-term view of how money works in real life, as well as getting them more familiar with the ups and downs of investing.

Lots of banks and money apps now give users the option of sweeping money into aseparate savings pot. This feature can work well for children with debit cards too.

Sweep 30p on a packet of biscuits and while it might not seem like much, it wont take long to accumulate in the long run.

Whats more, children can see what it looks like for money to grow over time, instilling good habits early on and paving the way for bolder decisions like investing.

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Use the lockdown to teach your kids the value of money here's how - Your Money

$10 a Barrel Oil Is Possible: Can American Energy Independence Survive the 2020 Oil War? – The National Interest

Trust me, this will be a regrettable day.

The declaration by the Saudi energy minister, Prince Abbdelaziz Bin Salman, at the March 6 Black Friday OPEC plus meeting has proven accurate as the worlds energy giants engage in a war over the black gold, causing prices to crash and sparking bankruptcy fears for the entire U.S. shale industry.

With Americas energy independence under threat, can the nations oil and gas industry survive the fallout?

No Plan B

After restraining supply since 2017 to support prices, the fateful meeting in Vienna had seen the OPEC oil cartel seek additional production cuts of 1.5 million barrels per day (bpd) from April.

OPECs core members were expected to slash 1 million bpd and non-OPEC members, principally Russia, some 500,000 bpd.

Ahead of the talks, oil demand was already flagging due to the global coronavirus pandemic and an unseasonably warm January. Iranian oil minister Bijan Zanganeh had indicated OPEC had no plan B if Russia or other non-OPEC members did not accept the deal.

Yet Russia refused to play along, reportedly on the basis that more cuts would simply hand greater market share to U.S. producers.

Saudi Arabias response was to flood the crude oil market by increasing production. It plans to hike output by up to 25 percent to 12.3 million bpd in April, setting off a price war in a bid to regain lost market share.

The oil-dependent Middle Eastern kingdom slashed its April selling prices, putting pressure on Russia and other non-OPEC producers, including the United States. Saudi Arabias neighbors have also flagged output hikes, including an extra 1 million bpd from the United Arab Emirates.

Russia reacted by claiming it could hike production by up to 500,000 bpd to a record 11.8 million barrels once the OPEC plus agreement expires on April 1.

The market reaction has been swift. Already low oil prices fell by more than half, tumbling to an 18-year low of just over $20 a barrel on March 18 after having traded above $50 for nearly five years, and spending nearly a decade around $100.

Morgan Stanley expects Brent crude to trade at around $30 a barrel through the second quarter of 2020, with others warning it could drop below $10 should the stand-off between Saudi Arabia and Russia continue.

Oil is now facing a triple whammy of a price war, COVID-19 and a supply glut, occurring just when the world economy is at its weakest point since the global financial crisis. The pandemic is expected to cut fuel demand by at least 10 percent worldwide, however this could worsen depending on the extent of the global shutdown.

Meanwhile, excess supply could reach between 800 million and 1.3 billion barrels in the first six months of this year, in what consultancy IHS Markit describes as the most extreme global oil supply surplus ever recorded.

The last time that there was a global surplus of this magnitude was never, said Jim Burkhard, vice president and head of oil markets at the London-based consultancy.

Prior to this the largest six-month global surplus this century was 360 million barrels. What is coming will be twice that or more.

On March 24, U.S. West Texas Intermediate crude was trading at around $24 a barrel, with Brent futures at $27 amid expectations of a $2 trillion fiscal stimulus by Washington to prop up a faltering U.S. economy.

Analysts are not confident however that the bleeding will be stemmed.

No one has a handle of how much the world will come to a halt, Edward Moya, senior market analyst at OANDA in New York, told Reuters.

It will probably be impossible for oil prices to continue to stabilize.

U.S. Shale Suffers

The shale boom saw America emerge as the worlds largest crude oil producer in 2018, exceeding output from Saudi Arabia and Russia. The previous U.S. petroleum deficit, which totaled $436 billion in 2008, became a surplus in September 2019, prompting President Donald Trump to declare earlier this year that we do not need Middle East oil.

Even a price crash in 2014-16 caused dozens of U.S. oil and gas companies to file for bankruptcy and hundreds of thousands of layoffs failed to dent the American industrys upward momentum.

Will this time be different?

Energy consultancy Wood Mackenzie estimates that many companies need an average Brent price of $53 per barrel simply to break even. Some $380 billion of cash flow would be erased if Brent prices average $35 for the remainder of 2020.

There is much less obvious excess spend to cut this time around after five years of disciplined investment and austerity. Raising capital is also much harder now, especially for U.S. independents, and upstream M&A [merger and acquisition] market activity is at record lows, said Wood Mackenzies Tom Ellacott.

In addition, many companies have already made the most of the obvious asset sales.

Analysts at S&P Global Platts have projected the U.S. industry will lose some 500,000 bpd in production this year, rising to 1.3 million bpd in 2021 as companies slash output, jobs and investment to stay afloat.

High debt levels will make it more difficult for the American industry to bounce back, should prices start rising again.

One of the reasons we dont see U.S. shale bouncing back as quickly as it did in the 2015-16 low oil price cycle is the state of financial institutions and their willingness to refinance the U.S. shale industry, said Chris Midgley, global director of analytics at S&P Global Platts.

The debt maturing over 2021 and 2022 - $20 billion and $30 billion respectively - will have to be refinanced, and at these prices it will be very hard.

A lack of investor support could be critical, according to Dave Ernsberger, head of pricing and market insight at S&P Global Platts.

The whole shale patch over the past couple of years has been under intense investor pressure to generate positive cash flow, to have dividends and return earnings to shareholders. Any company that said it would outspend and grow production wildly was punished in its equity price, he said.

Now after whats happened in the last week or two, its almost impossible to imagine any high-yield company to be able to refinance anything in the unsecured or secured market.Bond prices have tanked, yields are through the roof, trading at around 20 to 21 percent, so were headed for a lot of defaults and bankruptcies.

Last year saw record bankruptcies and write-downs, with 50 energy companies filing for bankruptcy including 33 oil and gas producers, according to energy law firm Haynes & Boone, with more expected in 2020 given the approaching wave of debt.

The industry is also under pressure from declining well productivity as shale regions mature. IHS Markit estimates an annual decline in output from Permian Basin wells of around 40 percent, requiring an unlikely drilling pickup to reverse, yet expectations are for rig counts to decline by up to 30 percent.

Although U.S. producers have succeeded in slashing drilling costs by around $20 a barrel over the past five years, only 16 operate in fields with new well costs below $35. The Dallas Federal Reserve estimates $50 per barrel as the break-even price for the industry and most have budgeted for prices of around $55 to $65 a barrel this year.

Never bet against technology to find ways to get more efficiency they will need thatbut theyve got some big headwinds in the next 18 months, S&P Global Platts Midgley said.

End Game

Will Russia or Saudi Arabia back down? S&P Global Platts estimates Russians fiscal break-even price at $54 per barrel, compared with Saudi Arabias $82, meaning that both have much to lose from an extended price war.

Yet Russia has accumulated foreign reserves estimated at $520 billion, while Saudi Arabia possesses the lowest cost oil supply together with foreign reserves of around $500 billion and low public debt. Producer Saudi Aramco has boasted an extraction cost as low as $2.80 per barrel, while Russian companies including Rosneft and Gazprom have reported production costs below $4.

Both Russia and Saudi Arabia can wait this out for quite a while before they take real economic pain, Midgley concluded. The analyst expects the price war to continue for the foreseeable future barring a tightening of market conditions, likely at the expense of the U.S. industry.

Nevertheless, low prices threaten Saudi Arabias plans to diversify its economy, with declining state spending risking popular discontent in repressive regimes across the Gulf and in Russia and Venezuela.

Even if oil prices return to around $50 to $55 a barrel, Saudi Arabias international reserves would drop to as low as five months import coverage by as early as 2024, rising a potential balance of payments crisis and the abandonment of its dollar peg, according to the International Monetary Fund.

America is fighting back, with the Trump administration announcing plans to buy up to 77 million barrels of crude and appointing Victoria Coates as special energy representative to Saudi Arabia, amid speculation of a U.S.-Saudi deal to calm oil markets. Some U.S. lawmakers have called for an embargo on foreign oil, while the Texas Railroad Commission has even suggested curbing Texas production to support prices.

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$10 a Barrel Oil Is Possible: Can American Energy Independence Survive the 2020 Oil War? - The National Interest

Lets Do Away With Idea That the Coronavirus Treats Everyone Equally – The Mary Sue

This week, Madonna added her voice to the chorus of celebrities accidentally embarrassing themselves while trying to make us feel better about the coronavirus. In a now-deleted post, the singer sits naked in a bathtub sprinkled with rose petals and offers bland platitudes over a melancholy piano melody.

Thats the thing about COVID-19, she says. It doesnt care about how rich you are, how famous you are, how funny you are, how smart you are, where you live, how old you are, what amazing stories you can tell. Its the great equalizer. Whats terrible about it is whats great about it. Whats terrible about it is its made us all equal in many ways.

This is, obviously, bullshit. I assume thats why she deleted the post. But while Madonnas romanticizing of the virus is especially icky, shes not the only one pushing this narrative that the coronavirus is an equalizer. Weve been hearing that a lot.

Daniel Dae Kim has criticized the lack of available tests, saying on Instagram, Everyone who meets the qualifications should be tested, period, because the virus doesnt care about race, or gender, religion, sexual orientation, whether youre rich or poor, or your immigration status.

Politicians across the country have been using some version of the Coronavirus doesnt discriminate based on age/race/wealth/political party rhetoric, and its been the subject of innumerable think pieces and news segments, most of them focusing specifically on how coronavirus doesnt care if youre rich or poor.

While its true that in a vacuum, the coronavirus and other afflictions should affect everyone equally, thats simply not the world we live in. In our reality, the wealthy and well-connected are have access to all sorts of things the rest of us dont that make prevention and care much easier. Youve probably noticed that celebrities have been sharing the results of their coronavirus tests, even when theyve been asymptomatic. As of last week, members of just one NBA team reportedly made up 20% of all the tests done in Oklahoma.

Meanwhile, tests are in such limited supply right now that most regular, non-famous/extremely wealthy people are being denied testing, even when theyre very ill.

There are other advantages the rich and famous have in these times, too. Demand for private jets is skyrocketing. (Presumably so they can fly to their private islands?) Its likely easier to self-isolate when you can do so in a mansion, with the means to stock up on essentials as well as luxuries, to send people out to run errands and buy groceries, and to still have access to childcarenot to mention the basic issue of being able to afford a break in income.

The coronavirus might not care who you are but it definitely affects us all differently. This virus will beand already isdevastating for low-income and minimum wage workers, for those in the gig economy, for single parents, and most especially for those experiencing homelessness. Unemployment is already starting to soar and with that, a lot of people are losing not just their income but also their health insurance (if they had it in the first place). Some people will be hit much harder by that than others, and some will never see it impact their lives and their health directly.

The coronavirus is not an equalizer. If anything, its only going to increase our existing disparities.

(image: KENA BETANCUR/AFP via Getty Images)

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Coronavirus Florida: Concern raised over boat access to spoil islands – Sarasota Herald-Tribune

While area beaches remain closed, spoil islands such as Snake Island, owned by the West Coast Inland Navigation District remain open because theyre technically private property.

This content is being provided for free as a public service to our readers during the coronavirus outbreak. Sign up for our daily or breaking newsletters to stay informed. If local news is important to you, consider becoming a digital subscriber to the Sarasota Herald-Tribune.***

SARASOTA COUNTY Despite beach closures, boaters were able to congregate this weekend at Snake Island, located at the end of Venice Inlet, and other spoil islands technically owned by the West Coast Inland Navigation District, as well as offshore sandbars.

Venice officials have reached out to the district about closing down the island, something that neither the city nor county marine patrol officers can do, unless the district asks for their help.

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See our complete coverage of the coronavirus outbreak

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Venice Marine Patrol Officer Paul Joyce noted that Snake Island is considered private property even though its technically owned by a public entity, the West Coast Inland Navigation District.

Venice resident Chris Stocke sent a photo of boaters moored near, or beached on, the island to Venice Mayor Rod Feinsod, raising his concerns about the situation.

With the beaches closed, restaurants closed, social distancing, most of us staying home, etc., the partying goes on as normal on Snake Island, Stocke wrote. In my view, this is totally unacceptable and should be stopped as beach-going has.

Feinsod, who has fielded emails from people frustrated by beach closures as well as those who are happy that theyre closed and want to see social distancing enforced more thoroughly, said he hopes the WCIND will ask for help in closing Snake Island and other spoil island areas.

Theyre creating a place where people can gather and, in my opinion, if theres a place where people can gather, they will gather, Feinsod said.

Justin McBride, the executive director of the West Coast Inland Navigation District, was working from home because of social distancing and did not respond to an email asking whether the district would make an attempt to close the spoil islands.

Because of its location near the mouth of the Venice Inlet and near the Crows Nest Marina, Snake Island is one of the more easily observed of the spoil islands created when the U.S. Army Corps of Engineers dredged the Intracoastal Waterway in the 1960s.

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Other well-known islands include Big Edwards Island, Little Edwards Island and Skiers Island, south of the Siesta Key Bridge.

In addition to spoil islands, boaters can moor on large sandbars such as the ones on the south side of Big Pass, north side of New Pass, and the Jewfish Key sandbar, east of Longboat Pass.

Beer Can Beach, a northern extension of Longboat Key, once known as Beer Can Island but now patrolled as a preserve by the city of Longboat Key, is another popular place for boaters to anchor and socialize.

Joyce said, just as with a sandbar at low tide, city, county and state law enforcement do not have jurisdiction on Snake Island and other spoil islands.

Still, law enforcement officials have been doing their best to encourage the revelers to be safe.

Were asking everybody to police themselves, heed the warnings from the president and governor, keep your six-foot distance apart from each other, Joyce said.

Snake Island photos shared on Facebook by Donna Stocke from both Saturday and Sunday also show watercraft from both the Venice Marine Patrol and Florida Fish and Wildlife Conservation Commission on the outer edge of the moored boats.

There were a few groups of people that were hanging out together more than 10, but most of those people were close friends or family or something like that, Joyce said.

Until WCIND asks for intervention, local law enforcement can only monitor the situation.

Longboat Key Pass

Along the 10-mile stretch of Longboat Key from the New Pass Bridge to Longboat Pass Bridge, boaters have anchored at sandbars and offshore. Other barrier island locals walk to the beach on Longboat Key and near Beer Can Island to set up chairs.

The beach itself is open, according to Longboat Key Police spokeswoman Tina Adams. But all public beach accesses on Longboat Key are closed. However, those boaters and beach patrons who were on Beer Can Island were doing so in violation of current county beach closures. If they moved south, just about a mile south they would not be in violation.

We would like to reiterate to the public that Greer Island, also known as Beer Can Island, is a Manatee County park and remains closed to all boating and foot traffic, Adams said. This park is located at the north end of Longboat Key. Town of Longboat Key Police will monitor the public beach accesses.

All Longboat Key beach accesses are blocked with traffic barricades and marked with a small sign that says Public Beach Access Closed, noting the danger of COVID-19. It says for more information visit LongboatKey.org.

Other cities on Anna Maria Island also have closed beach accesses but not the beaches. Beachgoers may use the beaches if they follow Centers for Disease Control guidelines and space at least 10 feet apart and limit groups to no more than 10 people.

Cars were parked on both sides of the road on the north side of the Longboat Pass Bridge, which is the right of way. A Bradenton Beach Police officer searched for vehicle owners in the immediate vicinity and issued warnings to others for illegally parking there.

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Coronavirus Florida: Concern raised over boat access to spoil islands - Sarasota Herald-Tribune

The Maldives Are Still Open, and You Can Have the Run of the Raffles Resort There for $1 Million – Robb Report

With most of the resorts in the Maldives set on private islands that have been designed for discretion and seclusion, the destination seems purpose-built for this age of social distancing. (Note: As of this writing, there are no travel restrictions to or from the Maldives for US residents, and flights are still operating via the international airport in Male.) But one five-star resort is taking private to new levels with the option to buy-out the whole placeincluding a second nearby island you can use for custom experiences. Dubbed You Run Raffles Maldives, the $1 Million package grants you exclusive access to RafflesMaldivesMeradhoo for five days and four nights.

The resorts 21 villas are scattered on the beach and over the waterCourtesy Raffles Maldives Meradhoo

Available through the end of the year, the package includes a total buy-out of the resortwhich is located in the pristine Gaafu Alifu Atoll, an 80-minute boat ride from the equatorand its 21 beach and overwater villas. The experience begins with a private charter flight from Male or transfer from the private jet terminal at Kooddoo airport. Once at the resort, pretty much everything is included, so over the five days you will enjoy things like Biologique Recherche facials, Aromatherapy Associates massages and other treatments at the Raffles Spa, unlimited water sports, the services of a both a butler and Marine Butler (the latter to set up excursions like snorkeling along the resorts two house reefs), and unlimited use of the house yacht, the Azimut, for dolphin-spotting cruises, fishing or diving expeditions, complete with drinks and canapes.

Hit the Long Bar at sunset for gin-based Maldives Sling cocktailsCourtesy Raffles Maldives Meradhoo

On the food front, the resorts culinary team will create custom menus and tailored dining experiences that can be enjoyed wherever you chooseso get ready to sit at sunken tables that have been carved from the sand, or gather around the Long Bar for Maldives Slings, a take on the signature Raffles cocktail made of gin, coconut, cinnamon and clove. As part of the buy-out, youll also have access to a nearby deserted island on which the team can set-up everything from a castaway picnic and romantic champagne-and-stargazing session guided by a personal astronomer to a sunset concert or a DJ-led party (additional costs for these events may apply.) When its time to leave, each guest will receive personalized robes, gourmet treats and other mementos of this unforgettable stay. The $1 Million You Run Raffles Maldives Package is available for up to 70 guests. The rate includes a 5% charitable donation split between the Maldives Marine Center and the Olive Ridley Project, an NGO that works to protect sea turtles. To book, emailreservations.maldives@raffles.comor call +960 6828800.

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The Maldives Are Still Open, and You Can Have the Run of the Raffles Resort There for $1 Million - Robb Report

V.I. Attorney General Walks Back Demand That Epstein Estate Dissolves Non-Disclosure Agreements Signed By The Pedophile’s V.I. Employees Who May Have…

ST. THOMAS V.I. Attorney General Denise N. George walked back an earlier demand that the estate of deceased pedophile Jeffrey Epstein cancel non-disclosure agreements with Epsteins victims and former employees.The agreements were designed to conceal the criminal activity of Epstein and his associates who are still there, according to the filing.

The attorney general, however, continues the court room fight over the fairness of the so-called Victims Compensation Fund, which would pay the under-aged girls and women who were victimized by Epstein. As proposed by the Estate, the victims fund would compensate Epsteins victims only if they agree not to sue anyone associated with his crimes.

Through the Department of Justice, the attorney general filed an update earlier this week with the Virgin Islands Probate Court. The department filed a civil lawsuit against the nearly $600 million Epstein Estate to ensure Epstein's victim's are fairly compensated and to ensure the territory can seize funds due the government.

In the filing with the Probate Court, Ms. George backed off the demands that non-disclosure agreement be cancelled. While the demands were still important, the attorney general said cancelling the agreements would not be tied to the Justice Departments approval of the Victim Compensation Fund, according to the Status Update recorded on March 18th in St. Thomas.

Ms. George has contended in her frequent off-island media interviews that the non-disclosure agreements are also being used to shield high-profile associates of Epstein.

According to a Vanity Fair magazine report last month, The people who worked on Epsteins island, tended to his various companies such as Southern Trust, drove his boats, piloted his planes, etc., probably know more about Epsteins activities than anyone elseand all are likely bound by nondisclosure agreements."

According to the magazine, Ms. George said An employee told me that he saw Prince Andrew on a balcony out at Little St. James groping girls right out in the open. He said he remembered walking up to him and saying, Good morning, your Highness."

Accusations against friends and associates of Epsteins are impossible to investigate, Ms. George told Vanity Fair, unless the estate agrees to release former employees from the NDAs they were required to sign when they went to work for the convicted sex offender on his private island.

Last month, Ms. George raised concerns about the proposed Fund, including that the proposed program administrator for the Fund was selected solely by the Estate, and did not appear to be in the best interests of Epsteins victims. The attorney general backed away from that argument in the recent filing.

As laid out in the V.I. Governments status report to the Court, the attorney general has worked closely with counsel for victims and agreed on a joint set of proposed recommendations for a fair and equitable alternative victim Fund, the VI Department of Justice said in a press release regarding the filing. While the Estate and its program administrator have addressed several of these recommendations, significant issues remain, Ms. George said.

At the victims suggestion, Marci Hamilton, CEO of Child USA and the countrys preeminent expert and advocate on child sexual abuse issues, is being proposed by the Attorney General and the victims as an independent administrator. Professor Hamiltons involvement would ensure that the program operates, and is perceived as operating, fairly, independently, and with informed sensitivity to the unique experiences of victims of sexual abuse and exploitation, the DOJ release stated.

Epsteins victims deserve to have a qualified, independent sexual abuse advocate involved in the claims process, who understands their unique and traumatic experiences and has expertise in assessing the consequences of sexual abuse, said Attorney General George.

The VIDOJ press statement stated: The Attorney Generals Office remains willing to work with the Estate to establish a Program that is fair, independent, and credible, in the interest of protecting victims from adversarial litigation, ensuring that they receive appropriate compensation for Epsteins crimes, and preserving the assets of the Estate for the public interest.

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V.I. Attorney General Walks Back Demand That Epstein Estate Dissolves Non-Disclosure Agreements Signed By The Pedophile's V.I. Employees Who May Have...

Five rich people who are not handling the coronavirus crisis well at all – The Canary

One might think that a full bank account, secure mansions, and private islands might keep the rich sane through the coronavirus (Covid-19) crisis. But unfortunately, were seeing meltdowns from the most pampered among us. Here are just five examples of rich people entirely failing to adult through the pandemic.

Oh, Madonna. Holding forth on the coronavirus making us all equals, from your rose-petal-adorned milk bath, while a harp plays in the background? This is batshit behaviour:

Pretty sure the besieged inhabitants of the Gaza Strip have it tougher than you, babe.

But fans and critics alike were begging Madge to exercise a little self-awareness.

Richard Bransons fortune was estimated at $4.1bn as recently as January this year. And his Virgin Group company brings in over 16.6bn a year. Despite this, Branson asked Virgin Atlantic staff to take eight weeks of unpaid leave while they self-isolate and social distance. The average Virgin Atlantic flight attendant earns just over 15k a year. Going eight weeks without pay is simply not an option.

Branson could pay every one of Virgin Groups 69,000 employees 2,000 for the next two months himself for 27.6m. This wouldnt even dent his personal fortune. Instead, hes asking skint staff to bailout his company with their own confiscated salaries.

As if this wasnt insulting enough, Branson also urged the British government to give his industry a 7.5bn taxpayer bailout.

In short, while Branson and Virgin Groups fortunes remain untapped, Virgin staff and the taxpayer keep his company afloat.

No, Richard. Just no.

The pandemic has hit young people, teachers, and parents hard. Students about to sit critical exams have had them deferred indefinitely. Teachers are moving out of their family homes in order to reach the children of key workers while keeping their own families safe. Parents are having to manage work and home-schooling their children. And for some families, all these things are happening at the same time. Its tough.

And yet, rich people problems are still a thing. Wealthy journalist Isabel Oakeshott asked us to spare a thought for her fellow wealthy parents at this difficult time:

Not the most considerate post at a time of national crisis. The response was justifiably withering:

Billionaire US president Donald Trump interrupted his press conference on coronavirus yesterday to bemoan the life of the billionaire. In a bizarre rant that went on for minutes, Trump complained about how tough it is for rich people to run for office:

Only one US president since 1929 was not a millionaire Harry Truman. And Trump is the wealthiest president in US history. This would suggest that wealth is a help rather than a hindrance to power in the United States.

Singer-songwriter Sam Smith has a net worth of $40m (34.35m) and is spending quarantine in their 12m mansion in North London. So when they took to social media to share their quarantine meltdown, Brits were not amused.

As a rule, if youve got a big house, food in your fridge, and healthy lungs right now, stop complaining. Or as one particularly articulate US citizen put it on Twitter:

Featured image via Twitter / Ghostink Wikimedia / Chatham House Wikimedia / Pitony Photography Wikimedia / Gage Skidmore Flickr

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Five rich people who are not handling the coronavirus crisis well at all - The Canary

Why AI might be checking into hotels sooner than you think | Travel Industry News & Conferences – Eye For Travel

In crisis and chaos there is always opportunity, and this might be the time for a levelling up of the travel industry landscape. Pamela Whitby reports

In the South Pacifics Cook Islands, Tata Crocombe has mothballed his hotels as governments around the world grounded flights and imposed strict travel restrictions, slashing occupancy rates everywhere. This is not the end of the world but Coronavirus is going to make the global financial crisis of 2008 look like a Sunday school picnic, he says.

Although Crocombe is under no illusions about the gravity of the situation, the chairman of two resorts and a private island, and the founder of an AI business in San Francisco, remains hopeful. There is opportunity in chaos, and I sense that new orders are being created in these unprecedented times, he says.

As tens of millions of people lose their jobs, and more expected to, the hope is that this will happen soon. The travel and tourism industry, employer of 319-million people and contributor of 10% to GDP, according to the World Tourism and Travel Council (WTTC), needs all the help it can get and Crocombe believes AI could be part of the solution.

Coronavirus is going to make the global financial crisis of 2008 look like a Sunday school picnic

Under the umbrella of his AI company hospitable.tech.ai, he is working day and night with partners in the US and Japan to accelerate efforts to introduce a chatbot that specifically addresses COVID-19. The bot will allow hotels, airlines, destination marketing organisations and more to provide individually tailored responses with timely and relevant information about how to respond to the virus. This information will also be aggregated for public health officials. We hope to be in beta in my hotels and others in the Cook Islands within weeks, and once tested it will be available for global release, he says.

At the same time, the beta testing of a separate AI, which has been developed over the past year and trained on four hundred million online reviews, is being ramped up. The aim of this is to help travel suppliers develop sales and marketing programmes based on actual real-time guest reviews. A further AI, also in beta, will allow guests to find a perfectly tailored and curated list of hotels at the best possible rate. Because, although the OTAs are auseful search engine for customers, people no longer want to trail through a long list of random hotels.

As the world reels, Crocombe is trying to look ahead. In his crystal ball, he sees curated lists of rooms and pricing structures that are personalised rather than dynamic. Guests who buy higher category rooms, are good to his staff, bring their friends along and write great reviews are much more valuable than the stingy moaners and complainers. At the moment everyone gets to pay the same price - whether they are good customers or bad - gets to pay the same price. AI could change this and the face of customer loyalty.

Levelling the field

In a market where 70% of reservations are still controlled by Booking.com and Expedia, essentially the shop fronts to Googles $100-billion travel empire, hotels are still paying commissions of anything between 15 and 25%. For small and independent hotels struggling to pay employees and stay open, the Coronavirus crisis has thrownthe unfairness of those high commissions into sharp relief. It also highlighted how vulnerable the industry is to shocks in the market. At the same time, many hotels have been less than impressedby the unilateral demands placed on hotels to refund any pre-payments and waive cancellation costs due to forced circumstances. It has also called into question the ethics of travel insurance providers. Put it this way: the hotels are being slammed from all sides.

Booking.com and Expedia's rationale for requiring hotel partners to stump up is predictable: concern for the safety and security of customers, partners and colleagues, all of which are dealing with high levels of anxiety. A spokesperson for Booking.com said: We believe that working with our partners to make it relatively easy for our mutual guests to change their plans is both the right thing to do and means they will be faster to return to travel when the situation improves, which in turn protects the future of our industry. Expedias official statement is along similar lines.

Working with our partners to make it relatively easy for our mutual guests to change their plans is the right thing to do

Booking.com

Even before this crisis, the business of major OTAs were under pressure with dismal share financial results, plummeting share prices and job losses. They had even approached the EU competition commissioner Margrethe Vestager to complain about Google. In a letter that is signed by 34 companies including Expedia, TripAdviser and e-Dreams, the worlds largest search giant is accused of being nothing more than one-stop shop for any travel industry product.

Yesterday, a statement from Booking.com CEO Glenn Fogel was a clear indication that there is a lot more pain to come for the OTAs whose business depends on the hotels staying open. The group is taking tough action including cutting non-essential business travel, cancelling internal events and off sites, slashing marketing spend, and freezing new hires.

At the same time, Fogel as well as brand CEOs Steve Hafner, John Brown and Brett Keller, will forego their salaries during the crisis, effective immediately. As hoteliers struggle to keep their doors open, they might well say this has come not a moment too soon. TheGoogle, Booking.com and Expedia trinity, they say, earn more from the travel than the entire industry itself, and their unregulated market dominance places gives them an unfair advantage. Many hotels have had enough.

The long road

There may be opportunity in the future but the road to recovery is going to be a long one. This not a great time to be in the travel industry, admits KrisNaudts, a psychiatrist who is also the founder and CEO ofCulture Trip. He worries that what is not being taken fully into account in corona modelling is panic and fear, which are the main drivers for behaviour. "In times of fear and worry, people cannot and will not travel. We are still early in the panic phase and we will seea waxing and waning of the virus situation where people do travel for periods of time and then they do not. In any event, this could last anything from six months to two years. On a positive note,Culture Trip, which has been tracking the crisis since it began in China in November, argues that people will still want high quality escapist content, and Naudts says his company is well placed to fulfill that need.

Travel opens our hearts and teaches humans not to be so stupid. Humans that dont travel are dangerous people

Meanwhile, Crocombe believes that around the world companies will be ramping up their efforts to develop AI. AI in travel is going to be accelerated by Coronavirus. Our industry has such low margins and high costs and we are going to have to find a different way of doing things better, faster and cheaper, he says.

With the skies silenced and doors shut in many places onto silent streets, the road to recovery for the travel industry looks long. If the airline industry is the measure the immediate future is bleak. Passenger numbers are down 85% on a year ago, according to the Transport Security Association.But Crocombe believes people will travel again and indeed they must. Travel opens our hearts and teaches humans not to be so stupid. Humans that dont travel are dangerous people, he says.

With many people around the world now holed up behind closed doors everything does feel dangerously out of kilter.

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Why AI might be checking into hotels sooner than you think | Travel Industry News & Conferences - Eye For Travel