Recover or Bust: Where We Are Now
Days are blending into one another. Politicians are at each others throats and Americans are still confused about a timeline for safely reopening. We were just over half-way through reopening when cases began to rise again. Now many states are walking back post-lockdown procedures. This is worrying many Americans. Part of an economic recovery is consumer confidence, but fear is throwing a wrench into the works.
Americans have two BIG fears on their minds: another shutdown with potential employment furlough, and a greater risk of infection from COVID-19. (If you have not checked the recent case numbers in your area, please see this map from Johns Hopkins.)
Many local governments have required strict health and safety precautions to fight against possible infection. This has put many industries in a severe bind. Travel, hotels, and entertainment are the three largest industries to suffer from the restrictions. Airlines were the first industry to feel the effects due to a travel ban. And movie theaters have been closed since March. Other areas have been suffering as well. Oil and energy prices have been at all-time lows, though rising. Restaurants and retail stores have had to lower staff and reduce foot traffic to meet safety standards.
Jobless claims have been falling month-over-month, which is a good sign. However, companies all over the U.S. might need to cut costs by laying off thousands of employees after Paycheck Protection Program loans expire. The Trump Administration, along with the Senate, is working to pass another stimulus bill in hopes of staying citizens’ financial obligations.
Cases nation-wide have been rising. Though vaccines are in the works, a cure being ready for consumers anytime soon seems unlikely. Because of this, Americans are not completely confident in returning to normal every day routines such as shopping, eating out, or socializing. Though, precautions taken by businesses and public officials have encouraged some local remittance.
It isn’t all bad. Even with the continued worries and bad news, economists are seeing a potential for a quick recovery when cases start to decline. China has been enjoying a boost in their national markets, along with a stronger yuan. The U.S. markets are fairing better now that our supplies chains in China are open again, however limited. Tech stocks have been leading the gains in U.S. indexes. The NASDAQ hit an all-time record on Thursday, July 9th. We have much to be cautious about, but we are in a better position now than where we were in March or April.