There’s a pretty simple reason why the stock market didn’t tank long-term due to COVID. Even if we get 3 million total deaths due to the pandemic, that’s “only” around a 5% increase in total deaths over the year where deaths are at their peak. 80% of those deaths are among people of retirement age. Though their spending is around 34% of all spending, the money of those who die from COVID will flow to others who will also spend it.
My explanation for the original stock market crash back in Feb/March is that investors were nervous that we’d impose truly strict lockdown measures, or perhaps that the pandemic would more seriously harm working-age people than it does. That would have had a major effect on the economy.
There’s a pretty simple reason why the stock market didn’t tank long-term due to COVID. Even if we get 3 million total deaths due to the pandemic, that’s “only” around a 5% increase in total deaths over the year where deaths are at their peak. 80% of those deaths are among people of retirement age. Though their spending is around 34% of all spending, the money of those who die from COVID will flow to others who will also spend it.
My explanation for the original stock market crash back in Feb/March is that investors were nervous that we’d impose truly strict lockdown measures, or perhaps that the pandemic would more seriously harm working-age people than it does. That would have had a major effect on the economy.