Now that the LONG overdue market correction has occurred under cover of Covid, and the economy has been pruned of its dead branches such as JC Penney and Pier 1 Imports, etc., it’s going be be an amazing year or two as we witness abundant new economic life, with fresh green shoots sprouting everywhere.
- Chance the Gardener.
Yes those dead branches like Boeing, Ford, and Caterpillar.
Companies need someone to sell to. And the world is not buying right now. The US economy is a world wide thing—and the world is not coming back any time soon.
When imports of products and parts; AND the exports start coming back we may see a recovery. But there is just nothing in the pipeline to generate much activity.
Bars, Salons, and Hotels will spur a little activity for a little time. But if the jobs don’t come back in the large manufacturing areas, the “recovery” will be short lived.
Pumping money into the system (the banks and stock market) will work for a while—but by most accounts the big money is sitting on the sidelines right now. With the Fed buying $5 billion a day in US Treasuries—and the central banks over the world buying a bunch of bonds there is not real, broad support for anything right now.
Sure, it could turn around. But I am skeptical that we will see that before 2021.