Amid the COVID-19 pandemic and ever-growing tumultuous markets, investors are choosing to take the cautious route. The drastic stock market crash sustained on or about March 23rd, 2020 still has many investors reeling, even after the S&P 500 climbed a stunning 18% this quarter – in a global pandemic no less.
Many influential American corporations have filed for bankruptcy, unemployment rates are high, governments are spending more than ever and the US Federal Reserve is viewed by many to have its hands tied given already rock-bottom interest rates, all of which is discouraging investors from taking riskier investments.
Many investors are equally perplexed with how the stock market can seemingly grow given the dire economic consequences that the pandemic has inflicted on economic superpowers, most notably the United States. Even as some stores and regions start to re-open which should technically help markets continue to climb, coronavirus numbers continue to grow in the US and around the world. Most investors feel that they haven’t seen the light quite yet and are still choosing to opt for conservative investments.
Source:
https://www.wsj.com/articles/frustrated-stock-market-skeptics-stick-with-cautious-bets- 11592127000?mod=hp_lead_pos4