The biggest pandemic in our lifetime just doesn’t seem to want to go away. Since we first got to know about it in early 2020, where China seemed to have huge number of infections of over 80,000 cases and 3,000 deaths, till now where we have over 250,000 new cases and 4,000 deaths per day! It would logically seem that since the pandemic could not be contained during lockdowns, it would get worse now that many countries have re-opened and are likely to remain that way as they could not afford another lockdown.
It is not difficult to understand why. Lockdowns will cause economic activities to come to a standstill, and without the ability to earn, many businesses will have to lay off workers and shut down, individuals losing jobs will spend less and exacerbating the economic pain. Many have already suffered from the first lockdown, the second would be unimaginably worse.
One silver lining that most are looking forward to, are the vaccines and cures that would bring the world back to normalcy. Another would be the hope of more stimulus packages by big countries/zones such as the US, EU, China and Japan. As a result, the S&P500 and Nasdaq have rallied significantly since late Mar 2020 and are now positive for the year.
How could the stock markets do so well, when the world suffers medically from pandemic and financially from the job losses and missed opportunities?
Explanations could range from (1) the support from the Central Banks – especially the Fed – and the governments, (2) optimism that the pandemic is over soon, (3) the corporations have adapted to the new world and are making great profits, or (4) investors’ money have to go somewhere and the stock market seems fairly safe now (FOMO too?).
However, knowing the above is hardly any help to investors who want to know what to do next. Follow the trend? Yes, the trend is your friend except at the end (do not forget the last part). Plus, we are approaching the bearish half of the year, where Augusts and Septembers are usually bearish. Would the markets take profits soon? Plus, vaccines are usually tricky to get right. Would the anticipated cures and vaccines really work? Would the return to normalcy be so straightforward?
Difficult questions and no straightforward answers. Tough decisions ahead in the face of uncertain stock as well as job markets. It is therefore critical now, for one to have a proven system that generates decent income in such uncertain times while protecting our hard-earned money. Checking it out for free thankfully, is one easy decision you can make today. Click below and discover how your financial situation will improve without the need to worry about the above uncertainties.