Given what we have seen in broad North American stock market indexes over the past six months, you could make the statement that COVID-19 doesn’t affect markets.
From the bottom in late March until recently, markets have risen steadily despite a backdrop of increasing global COVID cases. The explanation offered repeatedly along the way has been that the economy and the stock market are two different things. Besides, with lower interest rates investors would be foolish to bet against the Federal Reserve. On top of that, all of the significant government financial intervention would protect us from the worst impacts.
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All of these comments are and have been true. I have said them myself and believe them. The question is can stock markets continue to rise when COVID-19 isn’t slowing down and may very well be getting worse? The answer is that it is increasingly unlikely.