The stock market continues to go up and people think things are back to normal. However, things are getting worse, the economic condition will continue to get worse as long as the unemployment rate continues to soar higher. So far, 38 million Americans are out of work, and between 2 million to 3 million people have been filing for unemployment weekly. Also, these numbers may get worse.
If this continues, this means people will default on credit card payments, mortgages, utility payments, etc, as a result, they will have to sell their stocks or other investments and when this happens it may have an overall effect on the stock market.
All of this is happening from the first wave of the coronavirus and officials are now expecting the second wave to have a more damaging effect. If this happens, we should expect a longer shutdown, more economic damage that may last for years. In a worse scenario, the number of deaths may rise to numbers that we may not be able to contain.
Are investors ignoring these signs? please share your thoughts below.