October 6, 2020

Will “Pres. Donald” trump Covid-19 and how will this affect the Real Estate Market?

The recent announcement of the U.S President has obviously alarmed the vast majority of the population. Thinking whether or not it would affect the economy, an atmosphere of uncertainty now lurks in our surroundings.

But as we all know it, help will always be given to those who ask for it. Every cloud has its silver lining and in this case, Reuters has recently released that the President is doing well. Check out the full announcement here. It just goes to show that not only are we powering through, but we still see the rise in the real estate industry despite some setbacks along the way. 

Here are some of the reasons why it is forecasted to see a shift in the economic market due to the President’s diagnosis.

#1 Investors Will Take This Negatively

The ongoing pandemic has affected the mindset of investors since they wouldn’t want to risk their health to close a deal. It brings a connotation that the second wave of the virus is fast approaching. 

As an investor in the field of commerce, trade, or stock. Would you invest in a country that is showing signs that they aren’t winning the war against Covid 19? We can expect , these investors wouldn’t. 

This result in the minimal exchange and shift in the market that we rarely see yet has greatly affected us. Without investments from foreign exchange and alike, we wouldn’t see the growth that the economy needs.

With the thriving and booming of the real estate industry, we tend to look at this notion leaning towards a positive note.

#2 Stocks Have Dropped

After the announcement, U.S. stocks fell by a huge percentile in trading and has caused fueled concerns about the election and a worsening pandemic.

Considering the impact on how trade would be minimized due to the announcement, stocks will surely take the blow. If the trade and commerce within the U.S. is affected, it will obviously affect the currencies power and liquidity.

Looking over at how stocks are supposed to be processed virtually, it has been an issue that the stock markets have dropped in terms of sales and exchange. A sale that is not meeting their quota and has adjusted to what is their “last resort”, that will lead to the recession rather than the growth in profit. This surely is affecting the market we depend on for our daily needs.

#3 People Have Cared Less

You may be thinking why the announcement has yet to affect the citizens of the country. Or how they aren’t as reactive as you may have expected. Primarily, it can be because the issue is that people have normalized Covid 19.

The moment the announcement was released, the majority of the people have brushed it off and went on with their respective lives. The others have shown fear and chose to resurface their stand on the virus.

If you haven’t realized it yet, the people have affected the market in more ways that you have expected. The mere growth in small business has already shifted the growth and pattern on the growth of our economy. The continuous rise may or may not lead to recession depending on what happens next. But if people don’t care, should we do the same?

#4 The Ripple Effect

These are just some of the reasons why the market is affected, though minimal, a ripple can cause a greater impact.

Not only are we talking about how the market is affected with the said announcement, but the reality that Covid 19 may be trying to get our attention. The market will shift in line with how people are currently purchasing their daily produce, international trade, international investments, and even the real estate industry.

With all these factors taking minimal damages, even with how people react to the situation, it may be something we should consider. Fasten your seatbelts because the second wave is fast approaching and this may just serve us our awakening call. It may be seen as a failure that the leader of the free world and the most powerful man on earth has been victimized by this horrible disease, but then  it is always a good source of hope to know that America is still trying to strive for normalcy, getting up after it stumbled down to its knees and making sure that it still delivers the promise of American Dream to each and every citizen. 

Source: https://www.cnbc.com/2020/10/02/what-trumps-coronavirus-diagnosis-could-mean-for-markets.html

Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.