Economic outlook with the President getting COVID-19
LEXINGTON, Ky. (WKYT) - 2020 has been a year filled with frustration and at times chaos. This past week, President Trump contracted the coronavirus and the markets went for a tailspin on Friday. Yesterday the market bounced back strong to start the week. Independent wealth management advisor Josh Smith of Strategic Wealth Designers says the economy doesn’t need another factor to make it jumpy. He says the current situation is going to have a lasting impact on how Americans view the pandemic going forward.
“Just when we thought we were starting to finally focus in on the candidates and what direction the election was heading, we get a very serious health situation unfolding in real-time with the President,” Smith says. “Most people recover swiftly from the coronavirus but President Trump checks multiple boxes for those who are considered high risk and that set off some alarm bells on Wall Street on Friday. The whole dynamic changed, normal partisan rhetoric changed and there was legitimate concern by both sides for his well-being after being transported to Walter Reed Hospital.”
It’s known that the stock market likes certainty. 2020 has forced any element of certainty out of the picture. Smith says that viewers could see a big shift in thinking about COVID based on how the President as well as the many others in the White House recover.
“If the President and other White House team members come through this relatively quickly many of his supporters will feel even more emboldened to get back to living their lives, however, if he or others from the White House face a pro-longed struggle you could see Americans tightening their spending and their travels again,” Smith says. “Wall Street is watching very closely because this is a very big tipping point of where things head from here. I certainly wish no ill on anyone but regardless of what comes from this, people have to get their investments positioned correctly. At this point in the year, you have to start taking a look at the risk and the safety levels in your portfolio. If you are nearing retirement you’ve got to get off the rollercoaster and get your investments in-line with what is happening with the economy. A big loss hurts a lot more than a big gain for those in retirement.”
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