The Corona virus was the core reason the stock market plummeted in mid March of 2020. Americans and many from all around the world wondered when it would go away and how deadly it really was. It is now October 4th and there is still uncertainty but a vaccine is said to be useable by early 2021. With this news, market analysts are predicting the market to grow by up to 25% over the next few months. Historically, election years are when the market does best so this combined with the arrival for a Covid vaccine will in my opinion boost the market more than anticipated. Some people believe that Covid isin't going away anytime soon but I disagree. I would go even further and say that even if Covid doesn't go anywhere, we as a society will learn to live amongst it. There have been many pandemics in the past and we have shifted back to normalcy from all of them. Do you believe the market will continue to grow? Do you think it will crash again? Why?
https://markets.businessinsider.com/news/stocks/stock-market-covid19-vaccine-rotation-sectors-buy-goldman-sachs-invest-2020-10-1029644992#
With the near zero interest rates, I could see a crash occurring again. This is because there is not much consumer confidence with low interest rates. If we reach a useable vaccine before a crash occurs, then I imagine a crash will be avoided.
ReplyDeleteThe introduction of a vaccine into the market will definitely have an impact on the economy and consumer confidence. When it comes to adjusting to life during the pandemic, it can be seen that no country has done it well and I don't expect that to change anytime soon. However, I do believe that the introduction of a vaccine, despite the logistics and time taken to distribute it, would have a huge positive impact on a struggling global economy, helping countries to socially and economically recover from this pandemic.
ReplyDeleteIt will be interesting to see how the public responds to a vaccine. Given how political the virus response has been and how swiftly a product will come to market as compared to traditional vaccine development, a significant portion of the population may be skeptical about taking it.
ReplyDeleteI think the election will have a very large effect on the market in the near term. With Trump getting covid and the presidential debates expect markets to be very volatile. I agree the market will do very well if a vaccine is ready for use and widely accessible in early 2021, if that is not the case I would expect some setbacks, but maybe not a full crash.
ReplyDeleteI think that even with a publicly available vaccine it still might take time to get back to normalcy, as people will remain cautious for some time. Based on this election, I think each candidate will have very different plans on how to get the economy up and running so this will also have a huge impact on it.
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