The Beginning of the End?

   Some people expected 2020 to be their year, like me, but as we get into the third month, some people are acting like the world is going to end-they are buying all the toilet paper in the stores. I myself was almost was too late to buy toilet paper upon seeing some people take cart fulls of toilet paper with barely any left for others. I feel that they probably should see a doctor long before for COVID-19 if they need 144 rolls of toilet paper. 

   The idea of a recession has been around since last year and people started expecting a correction in the stock market after tremendous growth this past year, or even worse, a recession. Anything event detrimental to the US economy could've triggered a big fall in the stock market and COVID-19 was the chosen one this year. If you want to know more about my prediction of a recession, you can read more about it in my previous blog.

   COVID-19 is causing widespread panic across the globe causing many countries to shut themselves off such as Italy. One of the casualties of COVID-19 is the affect it have on businesses and workers because to combat the virus, the government is encouraging less crowded areas, social distancing, and for people to stay at home. This is causing less people to go out to stores and restaurants which will causes businesses to lose a majority of their revenue and cause workers to be either laid off, work at home, or have to stay at home with many workers not getting a pay check anymore. 

   The stock market has been in a bear market the past few weeks causing it drop greatly with an additional 3,000 points lost in the Dow Jones Industrial Average(DJIA) today. If this continues to happen, we soon can be in a recession. The majority of companies dropped such as JP Morgan(JPM) while a few companies such as Direxion Daily Junior Gold Miners Index Bull 3X Shares(JNUG) went up in these hard times. Additionally, there are a few companies benefiting from the threat of the coronavirus such as NMC Health Plc(NMHLY) rising 75% today.

   The virus is causing uncertainty for the future in the stock market and public health is placing a big responsibility on the President and his response to combat the uncertainty plays a role on whether or we will have a recession. 

   The virus has been affecting populations on an almost exponential trend causing the public fear to increase. Federal and state governments have put decrees in place to help flatten out the curve, but more action will be needed in order to effectively combat the exponential increase in cases.

   Trump has tried to help the decline in the stock market by pressuring the FEDs to cut interests rates to 0% to help the companies survive through this and also maybe helping out airline companies in particular who have taken a big hit from the travel bans in place and the public fear of traveling and catching the virus. He even also is trying to help by cutting payroll taxes. However, these actions didn't make a big difference in the stock market causing it to still decline because investors are looking for action by the President to directly combat the corona virus. If Trump can help successfully help the people affected by the corona virus and help lower the amount of cases developing, he could prevent an impending recession and help calm the public fear.

   However, the most important thing is to try to stay and home and away from the corona virus for the sake of your health and others. I hope you all are healthy and safe.