Thursday, December 30, 2021

One reason why the Stock market could be rising at high covid infection times that is kind of strange

 I have hesitated to write about this but it is also logical on many different levels.

First of all when you study the actual death dynamics of Covid in general you soon realize that it's the over 65 year olds who are mostly dying at a rate of 75% of total Covid Deaths.

What does this mean?

It means that all these over 65s will burn less social services and will not receive Social Security benefits or medicare benefits anymore.

This also will reduce incredibly what the government pays out through all these programs. Also, what happens is all these deaths mean that younger people are inheriting from all these older people dying various things.

In a very strange way this does have an effect upon Stock prices and will tend to drive them higher the more people that are infected and die.

However, I'm not sure if having more infections but less deaths doest the same thing or not.

So, more hospitalizations and less deaths likely will cost much more not less to the whole economic system of nations worldwide.

So, it is possible that the added expenses of increased infections could also be a drag on the nations economy and then what the Fed is going to do raising interest rates to quell inflation could also have a negative effect on the stock market too.

I haven't written about this before because I considered it to be in bad taste on many different levels.

However, now with Omicron more people need to be thinking about this because Omicron will tend to sink the economy more because of so many sick people who temporarily or permanently become dysfunctional.

So, what I'm writing about here is very important now because it is going to sink the economy a lot likely this year and people need to be more prepared for this potential outcome throughout society on every level so they can cope with the changes.

What I'm saying here is that the stock market directly or indirectly affects everyone in various ways. When the market is up it allows wealthier investors to help poorer people in many many different ways.

However, if the stock market reduces or dries up more or less that money will tend to dry up because investors usually only donated their interest or dividends to help less fortunate people.

So, the stock market potentially dropping is a really big deal for everyone in this way.

No comments:

Post a Comment