Piggy Bank: Who’s Making Money And Who’s Losing Money On The Swine Flu

Amidst the global flu scare there’s still money to be made–or lost. So who’s earning and who’s crashing? What’s going on in Mexico right now will be a predictor for what to expect in other countries.

The big winners in Mexico City are, predictably, the drug stores and pharmaceutical companies who are selling out of face masks and immunity boosters like Emergen-c. Other big sellers for these companies are actual flu vaccines like Relenza and Tamiflu. Besides buying out drug stores, residents of Mexico City are making major runs on supermarkets to stock up on food and essentials so they won’t have to leave their homes. Also up is Blockbuster online which is apparently making a killing with online movie rentals–we guess people are using their self-imposed quarantine time to catch up on Lost episodes. Maybe something about the show’s themes of hoarded food and sudden, poorly understood catastrophes is resonating with people?

So if the winners are products to do with barricading yourself into your house then it stands to reason that the losers will be any product that involves gathering in large groups or traveling in Mexico. Movie theaters, sports arenas and restaurants are all reportedly taking big hits, especially after the government issued health guidelines urging its citizens not to gather in large groups, touch one another or share utensils. U.S. president Obama seemed reluctant to discourage travel to Mexico (perhaps because he understands the economic impact that would have) but finally said that he would discourage any “non-essential” travel to there. Predictably, Mexican airline and travel/hotel companies’ stock reacted by falling considerably.

Perhaps the most unnecessary loss has to do with the pork industry itself. You cannot catch swine flu by eating pork or a pork product, but tell that to a panicked populace. Industries to do with pork processing- meat processing, grain sellers- are all losing money because of the unfortunate association.

Falling Mexican Stocks a Flu Symptom [Yahoo]
World markets struck by swine flu fears, airlines take brunt of selling as drugmakers rally [AP]