by AC
Ill keep this short and sweet.
-Large companies on the stock exchanges are enjoying unprecedented revenue. This is driving stocks up.
So this should be good, right?
normally yes. But the engine for this revenue is from picking up all the business from small-medium businesses that are closed, and will probably close permantently. People aren’t going to Randy’s Nail Supply and the local bakery anymore. They’re just going to one place like Walmart due to the pandemic. If people don;t start going back to the small shops our economy will be in for many years of bad times. There won’t be near enough jobs to cover these losses. Our retail system just did 20 years of consolidation in 6 months. We lost 20 years of retail jobs that probably would have been eliminated over time. In 6 months this reality will hit the markets and trickle up.
In essence the current stock market is just reflecting the surface level of the economy. In reality with 40 million jobs are gone and are not coming back soon, if ever. The gravity of this will eventually hit the market in 6 months.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.