06/15/2020 (Mon) 11:47:17
I don't think we are going to get through this so smoothly any more.
The market was in a decline last week, which actually wasn't bad or unexpected, it's what markets do and it looked like it was going to be over by Friday indeed the US market did rise on Friday. The problem is that this Covid-19 situation combined with the riots and the resurgence of the virus in China has now become a complete powder keg. What is worse is that we are even opening up as well, usually that would cause optimism in the market but it's not, that's reasonable as well consider that it could all back fire horribly. Even in Australia we know that there were people at the protests who had the virus.
If it does crash again because of this, it's going to be much harder to recover, we won't have the optimism we had before and it would serve as a second blow to an already downed economy. That's if it does crash, I'm not sure that it even will, I think what may very well happen is not a sharp drop but a long and gruelling decline as business are placed on the back foot again and their ability to make a profit decreases and the market as a whole itself starts shrinking.