Last week, I met with a close friend of mine for coffee. He was saying about a possible second-wave of attack inflicting more severe destruction than the first, causing a major stock crash. However, I do not entirely agree, and I explained to him why, which he also acknowledged and accepted peacefully.
Europe is enjoying their summer holiday now. Many are already driving out of country for their summer break around Europe. Covid-19 is a forgotten truth. Previous hotspots like France and Italy are favorite summer hang out countries.
I was also told in Europe that there is a big rumour spreading among younger generation, who felt that the Coronavirus is a hoax or a scheme by the government, with the aim to inject vaccines that contains a “mirco-chip” into human bodies, so that the government can control the people. The younger generation is confused, but one thing certain for them is that there is no fear for Covid-19, even if there is a second-wave of infections.
The US will not be hit by the second wave, because the first wave never really stopped. Death toll is more than 150,000 with more than 5 million infected and more than 2 million active cases. The virus is still spreading, but many Americans are already letting their guard down, as quite a number of them feel that “having a life” is more important than life itself.
On the contrary, China is not missing out any single steps to make sure the virus-spread is fully under control. While talking to many of my China friends, they claimed that China is now the one of the safest countries as far as covid is concerned. Last month, there is a sudden outbreak at Beijing Xinfadi wholesale market, but the Chinese government reacted quickly and the possible second-wave outbreak soon abated. It is evident that the citizens hold high level of satisfaction and trust to their government. And this will definitely make tackling the second-wave (if there is) much easier, because mutual trust enhances citizen-government co-operation.
Then there are developing countries with big populations such as Brazil, India and Indonesia all struggling to contain the first wave of the virus due to lack of resources, and the reality of shutting down borders and implementing social distancing is simply not economically feasible.
HUMAN NATURE OF ONCE BITTEN, TWICE SHY
Despite the global economies still suffering and the comparatively more nonchalant attitude of the west, I have doubts that a second-wave there, will cause a major crash to the global stock markets, like what happened in March and April period.
Human minds work in a way, that we will always learn from, or remember a crisis. Of course, there will always be exception, but in general, most people learn from mistakes. This is also an important factor, why I think a second-wave will not be as destructive.
The last spike is merely few months ago. We cannot say that world has not been warned about the crisis. No matter how unprepared the public health of each country, or how incapable the government is, in dealing with the pandemic, if the same crisis is to take place the second time within a short period of time, the world population will inevitably be better prepared.
This is the general human nature, of once bitten, twice shy.
THE SAME TYPE OF CRISES RARELY TAKE PLACE TWICE IN A SHORT PERIOD OF TIME
If we look at all the previous major global economic crises, the same kind crisis rarely take place twice within a short period of time.
In the last 20 years or so, we witnessed crises such as Asian Financial Crisis in 1997-98, Dot.com Crisis in 2000-2001, September 11 attack in 2002, SARs in 2003, Global Financial Crisis in 2008-09, Oil Crisis in 2014-15.
All the crises mentioned are different in nature.
It shows that human nature are more prone to surprise attacks from a new type of crisis rather than a recurring one.
Hence, in my opinion, even if there is a near term crisis that cause a major sharp stock crash, it must be a crisis that a big population of the world is totally unaware of today!
THE ECONOMY AND THE STOCK MARKET ARE DISCONNECTED
To a large extent, the stock market is no longer directly proportional to the economy.
Despite the ailing economic situation globally caused by the pandemic with the US having double digit unemployment percentage, the major stock indices continue to rise in US, with NASDAQ at all-time high, S&P at five year high and Dow Jones a mere few percent lower than its all-time high seen in February.
Read: Wall Street Vs Main Street – The Unstoppable US Large Cap Stocks Supported by Fed’s Dovish Promise
Most countries are still trying to contain the first wave of Covid-19 attacks. The most likely of the second wave of Covid-19 attack is likely to bud from Europe. While the people there continue to be oblivious, the European governments are in general better prepared than the first wave of attack.
If there is a second-wave of attack causing a revived lockdown in countries, the economy will undoubtedly be crippled further. More smaller companies will collapse, and the poor and the underprivileged will suffer further. On the contrary, the rich who controlled the majority of the stock markets will be left pretty much unscathed. Governments and monetary authorities will also do their utmost to pump extra liquidity into the financial system to give buoy to the stock markets.
Therefore, due to the disconnect between the economy and the stock market, the impact will not be as severe as the first. Even if there is a stock market crash, it will be a sell-out led by major institution to manipulate the public to sell, so that the institution can buy back later at a cheaper price.
Last but not least, I really hope that there will not be a second-wave of attack, and that a vaccine can be developed in the earliest possible time. More importantly, I also hope that the world learn lessons from this pandemic to realise that work and travel is not always the most important. Our loved ones are!
11 thoughts on “Why Even a Covid-19 Second-Wave Will Not Crash the Stock Market by Much?”
My same sentiments, even if there is a spike, countries are less likely to do a lock down, even if some did, if will hardly be world/region wide.
Actually, if u ask me, I am more worried about trade war between China and US. The tech war started in Ernest, the trade war is to follow?
Maybe then the cold war. Burification of tech and supply chains? Can Singapore still be a aviation hub.?
My gut feel is, government is more concerned about nursing the economy to health than erdicatating the virus
Hi SI, thanks for the heads up on Keppel earlier. Really appreciated it.
So many different types of wars… hahaha… Let's hope they will not come!
Hello All ▲▲▲ I am Dianna Kent and I live in Nevada, U.S .I am a full member of the Illuminati brotherhood, and am among the 1252 lodge. ▲▲▲ Iwas ordained by the Grand-master to go out to the world and bringmore members to the Illuminati, ▲ so I was requested to get 400Recruits for the brotherhood, I have 210 new recruits already. I amlooking for only 190 more to go,▲I am sure you want to be amongthe 190 people that will be earning $500,000 monthly and a brandnew car, ▲so add me up now so we can achieve this great chanceof being rich ▲. You get to live your dream life on earth filled with luxury. so i urge you not to miss thisGreat opportunity becoming what you long wished for life email: [email protected] or Whats-app +1(854) 220-5771 for guidance
I have been suffering from Herpes for the past 3 years and 8 months, and ever since then i have been taking series of treatment but there was no improvement until i came across testimonies of Dr Sayo on how he has been curing different people from different diseases all over the world, then i contacted him as well. After our conversation he sent me the medicine which i took according to his instructions. When i was done taking the herbal medicine i went for a medical checkup and to my greatest surprise i was cured from Herpes. My heart is so filled with joy. If you are suffering from Herpes or any other disease you can contact Dr Sayo today on this Email address: ([email protected]) or WhatsApp him on this Number +2349012175679 Visit his FB page: https://www.facebook.com/Sayo-Herbal-Healer-100145798345000/ also visit website: http://sayoherbalhealinghome.com/ or check blogs: https://naturerootandherbscures.blogspot.com/
Travel is not important but our loved ones are! But problem is travel is in the blood of my loved one. They just love travel. So how??? LOL
Crash is better so i can go for second round and make even more,,mkt always go up in the long run, Just buy that fake dip, CB will always save market first, ohterwisse more job losses if company go bust.
Haha… then it is up to you to decide on behalf of your loved ones (if they let you decide) what is important.
That is, if the "pleasure" that is "invisibly" in your "blood" that is more important?
God always give us freedom of choice. His guidance is always ignored until desperation… or many times, even up to death.
Hmmm…so you are hoping for the crash, just because you want to profit for yourself only, while many other people can have the possibility of suffering?
Frankly, I waited for many years for this crash, with seriously quite a lot of cash on hand, but I do not feel that happy, because people are dying and the poor are suffering.
You decide! haha…
This comment has been removed by the author.
This comment has been removed by the author.
It’s not about financial crash. It’s about if there is a second wave of Covid killing people.
Have you ever wondered what to look for when choosing a casino? I think that choosing a site is not so easy. But for now, I'll give you a cool site https://worldwide-online-casinos.com/. Here you can find reviews of all the world's casinos, as well as there is an answer to the question of how to choose a platform for gambling!
Natural herbs have cured so many illness that drugs and injection can’t cure. I've seen the great importance of natural herbs and the wonderful work they have done in people's lives. i read people's testimonies online on how they were cured of HERPES, HIV, diabetics etc by Dr Edes herbal medicine, so i decided to contact the doctor because i know nature has the power to heal anything. I was diagnosed with Herpes for the past 3 years but Dr Edes cured me with his herbs and i referred my aunt and her husband to him immediately because they were both suffering from Herpes but to God be the glory, they were cured too .I know is hard to believe but am a living testimony. There is no harm trying herbs, Thanks. Write him on WhatsApp on +2348151937428. @dr_edes_remedies deals with
Email him on [email protected]