The Economy: There will be a Coronavirus-induced downturn — and a recovery

American Thinker ^ | 03/06/2020 | Eric Georgatos

[SeekAndFind]

When airlines are cutting back on flights, when cruise lines are canceling cruises, when shipyard traffic drops significantly, when factories in China are down for a month or more, all in response to or in anticipation of coronavirus ripple effects -- there is going to be an economic downturn in the coming months. That’s pretty much a ‘duh’; how could there not be a downturn when all these factors are heading south at the same time?

More specifically, there will be layoffs in affected industries, and the Fed acting to lower interest rates isn’t going to change that fact. The seemingly never-ending, consecutive monthly reports of jobs growth and lower unemployment rates will end.

Further, in this election year, the MSM and every leftist and anti-Trumper on the planet will be looking for ways to pin the downturn on President Trump and his trade policies, healthcare policies, tax policies, etc., etc., ad infinitum.

Even if the virus shows signs of slowing or otherwise being contained, these voices will dismiss any positive news and relentlessly project that things will get worse and worse until at least November 3rd. And if the virus should actually grow in impact, full-scale panic -- including the need to change the occupant of the White House -- will be stridently advocated as the only reasonable response.

So… point one: don’t be even mildly surprised at the many variations of “Trump’s fault!” headlines coming your way in the next several months. And don’t buy them.

Sadly, there are segments of the American population -- notably many millennials who believe history began when they were born -- who are going to be prone to panic.

[Buckeye McFrog]

More than a few Journ-O-Lists have a future date with a lamppost.

[SeekAndFind]

I agree with this statement in the article:

Many have noted that one silver lining of the coronavirus will be the accelerating reversal of American ‘outsourcing’ to China -- with the necessary consequence of even more manufacturing jobs returning to America. 

Maybe another, even brighter silver lining will be a broader reawakening to the can-do American spirit -- and a corresponding decline of the shallow everything-is-about-who-gains-and-who-loses-politically ethos that has dominated media discourse over several decades, and gone into hyperdrive in the last 10+ years.

[glock rocks]

how could there not be a downturn when all these factors are heading south at the same time?

Costco and Sams are booming :o)

[laplata]

I don’t believe there will be a noticeable negative effect.

[RayChuang88]

I would not be surprised Trump will propose major tax reforms to encourage American companies to keep as much production in the USA as possible. I believe that German tax laws do the same, hence the reason why most German-brand cars are still mostly assembled in Germany.

[avital2]

some areas will have a downturn, some will have a slowing and some will have an upturn as Americans redeploy resources in the short-term.

[bert]

Dow 30,000 by October 15th

[SeekAndFind]

RE: Costco and Sams are booming :o)

Buy shares in Clorox and Reckitt Benckiser (RB), maker of Lysol.

[moehoward]

“ Many have noted that one silver lining of the coronavirus will be the accelerating reversal of American ‘outsourcing’ to China — with the necessary consequence of even more manufacturing jobs returning to America. ”

Absolutely. Add to which, we had already began (Trump right, again) the repatriation of some manufacturing. This SHOULD accelerate that to many more sectors. We also have a significant amount of businesses that can utilize telecommuting which would increase profits by requiring smaller brick and mortar footprints. Employees also benefit from reduced commuting expense.

As some cowboy once said, “It’s an ill wind that blows nobody some good”

[ManHunter]

Except for the Daimler AG (Mercedes) plant in Alabama, the BMW plant in S. Carolina and the VW plant in Tennessee.

[LouAvul]

My wife said this morning she wanted to move some more funds into one of our stock accounts.

The problem is to know where the bottom is. To move money, halfway into the adjustment, defeats the purpose.

[usconservative]

Costco and Sams are booming :o)

Only as long as there's product to sell.

Apple announced yesterday they're running short of iPhones because of factory shutdowns and supply shortages. Some of my employers large scale technology suppliers are announcing delays in getting product to us because of factory shut-downs and component shortages in Asia-Pacific. There are other early indicators out there that there will be an economic impact and it'll very likely be pretty broad based.

Responsible individuals prepare accordingly.

[usconservative]

The problem is to know where the bottom is. To move money, halfway into the adjustment, defeats the purpose.

If you're looking to time the bottom, forget it. This is all uncharted territory.

If you're looking to grow your investments, now's not a bad time to put money in. You may not get the "full" effect of investing at the absolute, rock bottom ... you will however grow your money. A short term loss on investment will inevitably return a higher investment back to more than cover the short-term "loss" @ investment time.

I'm getting money from one of my cash accounts lined up to invest on Monday. I put money in this past Monday also and no regrets doing it. It'll come back and then some.