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Three quarters of Americans are pessimistic about the country’s economic future, new report shows

Americans are pessimistic about the US’s economic future due to the effects of the ongoing Coronavirus pandemic, new report shows. Nearly three-quarters of them believe the recession will prolong until at least next year.  

Since its outbreak, the COVID-19 pandemic has shattered worldwide economies, including the US’s economy. As of May 2020, 13% of adults in the US have already lost their jobs or experienced a significant reduction in their payroll due to the COVID-19 outbreak, according to Statista

As the epicenter of the coronavirus outbreak has shifted from Italy to the US, the pandemic has brought even more disastrous effects to the economy. Millions of Americans have filed for unemployment benefits, the Small Business Administration has run out of money for its PPP, and the Federal Reserve had to pour $3tn into the economy to stop unemployment soar to levels unseen since the 1930s Great Depression. 

Yet, in recent weeks, many states have started reopening, and millions of Americans could go back to work, which made some of them hopeful that the country’s economy is getting back on track. However, as businesses have started to reopen, and some of the lockdown restrictions have been relaxed, the country has seen a massive spike in the number of COVID-19 cases, which isn’t good news neither for Americans’ health nor the economy. 

Data from a poll conducted in March shows that 65% of US adults believed that the COVID-19 outbreak would cause an economic recession or depression. Yet, now, when the economic recession is a fact, not a prediction, new research from Simplywise shows that 72% of them believe that the recession will prolong until at least next year. 

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What investors should expect from the stock market

First things first, keep in mind that the economy and the stock market don’t always go hand-in-hand. In other words, there could be a recession happening, and the stock market could still flourish. So, an economic downturn doesn’t always translate into a stock market downturn as well. 

Yet, the two are also often connected. So, if businesses shut down again due to lockdown restrictions to stop the spread of the COVID-19, that might potentially lead to another stock market crash. So, even if your investments are doing great right now, there’s a chance that this won’t be the case much longer. 

It’s no secret that the stock market is unpredictable, even without an ongoing pandemic happening. So, it is wise to avoid trying to figure out what to expect from the market, especially in terms of timing the market. Timing the market means predicting when a market crash will happen, and stock prices will hit rock bottom and selling your investments right before that moment. In fact, often, even experts find it nearly impossible to get such precise timing of buying and selling at the ideal moment. 

So, what’s the best bet? To simply continue to invest, no matter what happens with the stock market or the economy. But, in order to do that smartly, you must have a long-term strategic approach. Why? Because if you have a long-term strategy, then what happens in the short term doesn’t matter. 

Investing for the long term explained

How do you invest for the long term when there’s a recession happening, and the stock market could crash at any time? 

Investing for the long term pretty much means that you shouldn’t have a buy and sell strategy nor finding the ideal moment to start investing. The only thing that truly matters is diversifying your portfolio. So, your existing investments may take a hit in the short term due to the market downturn. But if you have a diverse portfolio, they’ll eventually bounce back. 

Many financial experts explain that diversification is key to getting your investment through a recession or a stock market crash. And, it’s pretty easy to understand why: when you put all your eggs in one basket, when the market crashes, you risk losing it all. But, by spreading your money across various stocks, bonds, or other securities, it is improbable that the wild ups and downs of the market affect all your investments. 

Another solution would be to turn to more secure investment options in the actual context. In other words, you can start investing in markets that aren’t so dependent on a single economy. For example, the Forex market might be a more secure one as you can trade on various markets and economies. In fact, the global Forex market is the world’s largest financial market and has the largest markets located in major financial centers such as New York, London, Tokyo, and Hong Kong. So, you’ll trade in places around the world where the trading activity is more active than anywhere worldwide. 

Plus, the Forex market can bring one more advantage to you as an investor. Leaving your job and start trading 24/5 (the Forex market is a 24/5 market) during these uncertain times is out of the question. But, even if you are a busy worker, you can still gain extra income from PAMM investments as all you have to do is to allocate your funds and monitor the trading activity.

It’s really difficult for anyone to know how long the recession in the US will last. And the chances are that things might get worse before they get better. And, make no mistake, the US’s economy is a major global playing. So, not only traders and investors here are affected by the country’s economic situation. For example, countries like Haiti, which rely on imported foods, are also affected by the pandemic’s global economic toll. 

As for investments, in the US, and anywhere around the world in places that have been affected by the economic impact of the ongoing pandemic, as long as you invest in the right places and sticking to a long term strategic approach, it doesn’t really matter what the recession is doing to the stock market. 

Haitian Times

Haitian Times

The Haitian Times was founded in 1999 as a weekly English language newspaper based in Brooklyn, NY.The newspaper is widely regarded as the most authoritative voice for Haitian Diaspora.
Haitian Times
Jul. 28, 2020

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