Poll: The Future Is Bleak?
“Whoโs wrecking the U.S. economyโs future?”
- 44%ย ย Covid
- 22%ย ย The White House
- 14%:ย China
- 11%ย ย The People
- 9%ย ย ย No one. Itโs 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, thereโs 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 couldnโt be spread if it werenโt for the people (11%), and it couldnโt be spread by the people if werenโt for the govvie being early and late with quarantines (22%).
If moneyโs 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. Itโll be a tug of war, because stocks donโt 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, itโs not the White House. If Chinese relations are repaired, coronavirus goes away, and the wreckage worsens, itโs 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?