There is no denying that the pandemic has posed such a great threat to investors. The rate of the S&P has experienced a new low with a decrease of about 22.6% the past year alone. On the outside, it is as if the markets are slowly stabilizing as every day that passes, however, what many don’t know is that the stock market runs on assumptions. All it takes is some bad news regarding health and the economy and the charts will all come crashing down.
Just by looking at the effects, COVID-19 treats everyone the same. Whoever catches the virus will require immediate and intensive medical treatment. When the pandemic started, all of us were in the dark mostly because we didn’t know who needed intensive care and who would likely recover at home.
And just like any other scenario in this pandemic, the stock market is suffering different setbacks. The feds and the congress are all working tirelessly to keep the market steady. To combat this, congress had passed the CARES Act while FED helped them to cut the fund rates to zero. Other financial adjustments also were made to carefully liquidate the money being administered into the markets.
Even if there is a little hope shining through amidst the times, the situation can also be viewed as volatile from an expert perspective. No one could ever know what the day will bring and there is no definite roadmap to determine the market health in the next few months. All around the world, death tolls are rising especially with the new strain that’s appeared in the UK.
But on a positive note, infection rates can be controlled if we stay at home where possible. Pharma companies are currently competing on creating a vaccine and people are becoming more resilient. Although unemployment rate is still at a high and the market is depressed, a lot of industries will need to be adjusting and working their way around the pandemic. There is no telling when this will end but companies will need definite back up plans to counter the effects.