Quote:
Originally Posted by WarrenC12
I think it could very well be a "dead cat bounce". The market was overvalued, and we're in an extremely long bull market that was looking for an excuse IMO.
It would be nice to see this blow up in Trump's face during an election year.
COVID-19 will have a huge impact on earnings in the coming quarters. Even if it's mostly due to some of the knee-jerk overreactions we've already seen.
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The problem with America is that everyone invests in stocks (over 50%!) and Trump is seen as good for the stock market. Even unions are invested in it. Since being elected more are buying stocks, not less. There have been huge gains since his election and he's been careful to always push for lower rates and more spending. Even if you hate Trump, most people will not vote to lose money. That's why I feel that Trump will likely be re-elected, people are too scared about a large drop should a Democrat be elected.
The virus is a shock, but the people will likely not blame Trump for it. Unless the Democrats can come up with a candidate that will be just as good for the stock market, or less Americans invest in stocks, Trump will not lose the election. Its a giant Ponzi scheme that everyone is voting to keep up.
Just like gun owners and religious believers whether republican or democrat feeling will generally vote for Trump because they want to keep their guns and religion. The Republicans have been smart in locking down certain special interest segments that will vote for someone they don't believe it just because they know their special interests will be protected.