Poll: The Future Is Bleak?
“Who’s wrecking the U.S. economy’s future?”
- 44% Covid
- 22% The White House
- 14%: China
- 11% The People
- 9% No one. It’s gonna be good!
The Invstr community is having to negotiate with tens of millions in jobless claims, and a depleted American workforce due to coronavirus. In a domestic sense, there’s rioting and looting, while in an international sense, there are trade wars. The finger-pointing has begun!
The obvious culprit is the coronavirus (44%), and thus its Chinese origins (14%), but remember, coronavirus couldn’t be spread if it weren’t for the people (11%), and it couldn’t be spread by the people if weren’t for the govvie being early and late with quarantines (22%).
If money’s a problem in the United States, no problem; the Federal Reserve will just print more of it with quantitative easing. This combined with interest rates at zero means the economy is untethered from the stock market, so perhaps we can be bearish on one and not the other?
It depends. It’ll be a tug of war, because stocks don’t just need low rates and inflows from the bond market, stocks also need a good economy, an able workforce, and willing investors.
We can troubleshoot our economic woes. If Joe Biden becomes president in November and the wreckage worsens, it’s not the White House. If Chinese relations are repaired, coronavirus goes away, and the wreckage worsens, it’s not that. It might just be us!
Few expected FAANG to run away with this poll! The future is a long time. What do you make of it all?