How Will the Pandemic Change the Economy?

Market Watch writes about a trap awaiting the stock market in the next months. Their thinking is “at all of the good news has been squeezed out of the tube of toothpaste!” These bits of good news include “unprecedented stimulus, an inevitable curve flattening in U.S. cases and deaths, reopening plans and optimism over remdesivir clinical trials.”

Summer could bring “hard economic data collapsing like we’ve never seen before, terrible corporate guidance, stories of pending bankruptcies,” and a second wave of layoffs that will hit the white-collar sector, warned McElligott. Rising trade-war rhetoric from the White House as a presidential election campaign heats up could present more risk, he added.

“That’s why I think folks are getting ready to hit the wall again, with this idea we’ve moved out of stabilization and now we’re back into the harsh reality of what this is,” without having a Federal Reserve boost and no more stimulus checks until things get a lot worse, he said.

These folks look to the fall as a time of market recovery but only after a fall in stock prices this summer. Their thinking is that as the pandemic persists, or even worsens, it will negatively affect stock prices..

Which Business Models Won’t Work Any More?

The pandemic will go on for at least two more years if there is no vaccine or medicine to will kill the virus. If it then mutates and comes back every year, the effects on society and the economy could become permanent. This would give us a world in which travel is curtailed. Cruise lines, airlines, travel agencies, and vacation spots will no longer have sufficient customers to stay in business in their current forms.

If social distancing becomes a way of life, restaurants, casinos, bars, and sporting events will all find it hard to remain profitable with smaller customer bases. When no one can travel by car, plane, train, or bus, the consumption of gasoline and will drop and keep the price of oil down into the distant future.

Online business will likely become increasingly dominant as will those that deliver or do “curbside” service.

Thinking about how the coronavirus will reshape the economy will help traders and investors make the most profitable decisions going forward.

How Will the Pandemic Change the Economy? – PPT

How Will the Pandemic Change the Economy? – DOC