When COVID-19 made headlines in mid-March, the impact on industry was devastating as many businesses took a hit from the protocols put into place to keep us safe. As economic recovery is certainly underway, experts have stated fears that a second wave of the COVID-19 health crisis may impact the US in the coming weeks. The burning question on everyone’s mind besides the safety of our citizens is how this will affect stocks and investments. As a leader in the futures trading space, Delta Trading Group reviews potential ways that the second wave may serve as a catalyst for changes.
Clifford Vance Cast of Delta Trading Group acknowledges that, while we can safely expect that a rise in cases will occur as a result of people spending more time inside during cold months, how these changes will work to effect stocks is certainly variable. Many believe that the state of the country’s stock markets will depend heavily upon several factors, such as the fear of an impending second wave and the protocols put in place to lower the fallout. For example, Delta Trading Group notes that Germany’s DAX and France’s CAC 40 have fallen as fears of the second wave settle in in Europe.
Assuming that we utilize similar protocols to combat the second wave as we did the first, some argue that the markets that will rise and fall will be the same as in March- April when they were the most stringent. Clifford Vance Cast recognizes that this would mean consumer discretionary goods stand to fall as a direct result of individuals ensuring that their discretionary budgets are smaller in preparation for a potential financial fallout. Transportation and energy stocks could be in a similar situation, as people will likely travel less in the event of a second wave of coronavirus. Not every market would trend this way if we were to enforce stricter lockdowns, Delta Trading Group notes, and stocks for tech, delivery, and healthcare will likely remain strong.
A variable that could lessen the impact of a second wave is that businesses are much better prepared this time around, both mentally and in the context of facilitating ways to do commerce via online portals. Clifford Vance Cast acknowledges that companies that have adapted well will likely remain strong even in the event of a second wave, but this may also hinge on how preventative protocols are handled. The fact remains that even industries that have for argued against the viability of remote work channels have proven that they can, and will, facilitate such work if it is needed. Delta Trading Group also recognizes that stocks seem to fall in response to an uptick in deaths rather than the number of cases. This is a silver lining for investors, as this means that, if the virus is kept mostly under control or is transmitted mostly amongst younger and healthier members of the population, susceptible stocks may remain stable even as winter approaches.
Clifford Vance Cast of Delta Trading Group recognizes there are many factors that will serve to impact businesses and their stock prices that we cannot fully account for in the present. Experts in the fields of stocks and futures trading have a hand on the pulse currently, however, and will continue to lend their expertise to theorizing where the future of our industries is heading.