Stock Market has been kind of a mess these last couple of weeks, mostly because of the uncertainty surrounding the COVID-19 pandemic and the confusing and conflicting statement coming from all angles from industry professionals everywhere. Before the outbreak, the market was actually doing quite well, especially for the USA, and Dow Jones was actually at an all-time high right before the outbreak hit.
But these days, the future seems much less positive, with no known date of the outbreak ending in sight. But it should be mentioned that since the outbreaks started to stabilize across Europe and in some states across the US the stock market has found its ground and is getting more stable yet again.
Everyone agrees that the following couple of months will be extremely hard for everyone. Including strong and weak economies. Until there is a clear understanding that the economy can go on and start rebuilding the stock market will likely struggle as well but as everyone agrees the end of the pandemic might be near, at least the normal life might be getting more and more realistic.
And the market will reflect that more and more with each following week. While the change won’t be sudden, there are a couple of countries that are expected to have the best outcome out of this situation.
The country that is currently most affected by the virus is the U.S and the stock experienced the worst fall ever the last couple of months. The country has seen the highest unemployment rate since the great depression.
While the stocks are still far from where they were before the pandemic started they are expected to improve over the course of the following months. It’s still too early to assume that the Dow Jones will be back to its original form by the end of the year, most investors probably hope so by that will depend on a lot of things that are currently largely unpredictable.
But according to the White House and their promises, the last quarter of 2020 will be quite profitable for the country. Some are even saying that It will get back to its original form. But even if it doesn’t happen, if stocks improve and continue to go up, in somewhat of a stable manner this will still be good news for everyone investing.
So you should definitely be looking closely at the U.S stocks since they seem to be moving up already and when the effects of the pandemic stat to lessen, the improvement will get even more drastic.
South African have been less affected by the virus and the numbers are here to confirm this. While the lockdown affected the South African economy and the stocks are actually looking quite promising and this set up will change as the lockdown restrictions start to loosen and more businesses reopen or get back to their normal functioning state.
The South African stocks were among the ones who were the least affected by the outbreak, so they will have the easier time getting back to normal and since this is already visible on the stock market, you really aren’t bargaining much. In 2020 it’s quite likely that South Africa will be the country with an outstandingly strong economy at least in the region and it will have an easy time gettings its markets up to its old standard.
South Africa is also seeing increased unemployment rates, but the stock market has managed to stay somewhat less-affected and this trend will carry on as long as the lockdown measures are strict, and then the improvements will follow as well. South African stocks are definitely worth checking out, you can get in on the stocks through local brokers, XM South Africa rated here.
If you haven’t already since they will definitely be the ones that bounce back the quickest after the pandemic is over and you will be able to see the gains immediately. The county has already presented its lockdown exit plans and the country seems to be getting back to normal, so the stocks will reflect that in the following week as well, maybe even sooner than that. By the end of the year, it is quite likely that Germany will be on its way to full recovery.
The country which has been criticized quite a lot over the past few weeks because of its approach to COVID-19 might be prioritizing its economy over the safety and well-being of its citizens, or as the government officials say it, they trust their citizens to comply and maintain the rules designated to keep the virus from spreading in the communities.
This is why the restriction hasn’t been as tough, in Sweden as they’ve been another country. This approach might actually become a topic of strong division amongst the international communities, and there might be harsh criticisms coming in Sweden’s way the following months, but as a result, their economy will stay largely put, at least for now and the stocks won’t really see much of a difference over the course of the next couple of weeks.
Despite what you may think of Swedens’ approach to handling the COVID-19 pandemic, their economy will be one of those lesser affected ones and the stocks will match just that. So even if you aren’t on board with Sweden’s approach to handling COVID-19, it would hurt to benefit from it financially so keep an eye out of Swedish stocks and make sure to invest, since it is less likely to experience a huge slump in the upcoming weeks, but we don’t know if the outbreak is going to hit the country in the future.
Sweden so far has resisted the urge from other European countries, to follow the shared model that prioritizes social distancing but whether or not this works will only be visible in the future. For now, Sweden’s economy is among the least affected ones so we might as well make the most of it. It should be mentioned that the Swedish economy will still shrink, even if they continue to experience the losses, but there has been.