Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

unblock

(54,566 posts)
1. The effects of Covid-19 are indeed a targeted disaster
Wed Aug 26, 2020, 03:26 PM
Aug 2020

This is much mite like an economic tornado than a hurricane in that some companies are doing fine and others are getting crushed.

Businesses that fundamentally rely on close customer contact are seriously hurt. These tend to be smaller and private businesses, I.e., Main Street. Local salons, bars/restaurants, etc. other than done chains like McDonald's, these typically aren't well represented in the stock market.

But many white collar businesses and largely automated factories are doing fine. And as you note, some ebusinesses are actually benefiting from it. Most of these business tend to be larger and public, hence, they show up in the stock market, particularly the nasdaq.

So there's a huge gap that real. Then the government came along and spewed money everywhere, not just targeted at the struggling businesses. Even businesses doing fine have benefitted from the fed actions.

The interesting question is how long does this go on and how much reverts to normal if and when the pandemic is "over".

Recommendations

0 members have recommended this reply (displayed in chronological order):

Latest Discussions»Culture Forums»Personal Finance and Investing»It's just QQQ and S&P now»Reply #1