Democrats Should Be Afraid of the V
President Donald Trump has told us and other government officials that the recovery from COVIS-19 will be quick and V-shaped. The President believes that 2021 should be a phenomenal year. Democrats, on the other hand, do not believe the President and his story. I invite you to take a look at the chart below of the last six months’ return on the NASDAQ market. I chose this market chart because even though all the indexed charts are leading indicators of future economic activity at least six months out, the NASDAQ represents growth companies.
Of the three major indexes, the NASDAQ index is of companies in which investors see the greatest amount of opportunity and risk, and from which they would expect a much higher reward than either the Dow Jones or the S&P 500. As of this writing Thursday, May 28, the NASDAQ was about 3 ½% from its all-time high.
Why is this important? Many Americans have been concerned about what happened after the market collapse to their investments in their IRAs and 401(k)s. If we were to look at a chart of the S&P 500 and the Dow Jones, we would not see as abrupt a recovery that we see in the NASDAQ, even though there is significant recovery from the market bottoms. As one Wall Street pundit put it in a recent interview, “Perhaps the dynamic recovery of all three exchanges points to the fact that perhaps COVID-19 was a con job.” The latest numbers from the Johns Hopkins report show that 1.71 million Americans have had the coronavirus in their bodies.
Also, the Johns Hopkins report shows that over 101,000 Americans potentially have lost their lives to COVID-19. I use the word potentially because the governors of Colorado and Washington state are questioning the numbers in their own states. I believe that over time we’ll begin to assess how many actual deaths came from COVID-19.
I recently did an analysis of the difference in the attitudes of the leadership in the states asking to be opened or keeping their economies closed. All the Blue states, with the exception of just a few, have decided they want to keep their citizens in homes, and out of stores, restaurants, bars, movie theaters, and many more places. This is while the Red states were the first to open, though under great protests that they would invite mass death by taking such actions. It appears that the Blue states want to keep control of their citizens, while the Red states want to open up and give their citizens more freedom.
The worst thing that can happen to the Democrats in November is stock market gains. By the time we get to election day, if the American stock markets and perhaps other markets around the world have recovered all of their declines as a result of the reaction to COVID-19, the Democrats will be in trouble.
All my life I have been a numbers person. For almost 50 years, I have tried to make decisions on what my clients should do with their money. The volatility of the American markets has been unprecedented in my lifetime, and it’s certainly still possible we will have more volatility; however, I do not believe it will be as volatile as we saw several months ago. There are clearly some companies that will go out of business. Most of them will be small businesses, but some major businesses may downsize or be forced to close.
Keep in mind that there were some businesses that were able to marginally survive because of the robust economy we had going into this pandemic decline. I believe that some number of those marginal businesses will not survive, but the ones that do survive will grow and prosper
Perkins Twist: the outcome of the election will determine if we truly understand or if we will obtain the information needed to evaluate our reaction to the COVID-19 virus. Also, were the actions are taken appropriate or an overkill? I have two further questions that need to be answered if we have an investigation: first, why were there almost 4,000 hospital beds in New York City that were never used to treat any kind of patients? Second, why after almost 16 weeks of the pandemic and the precautions did Dr. Deborah Birx decide for the first time to wear a facemask?
Perhaps, you can think of some more things that seemed to be unreasonable to you? And if you wanted to find out the answer to your questions, who would you call? I genuinely hope there will be a commission that will take a look at our reaction to COVID-19 and answer the most important question, did we overreact?
Dan Perkins is a published author of 4 novels on nuclear and biological terrorism against the United States and is a current events commentator for over 20+ news blogs. He recently has had commentaries posted on Flag&Cross and Clash Daily. He appears on radio and TV regularly many times a month. Dan’s newest show is called “America’s Cannabis Conversation,” on the W420radionetwork.com. More information on Perkins can be found on his web site: danperkins.guru.