President Donald Trump has been planning to reopen the United States' economy amid the threat of the second wave of coronavirus outbreak. The POTUS is promising there will be a "tremendous rebound" in the economy in the second half of the year. However, the investors are starting to doubt if this will happen with the looming threat of COVID-19.
According to Politico, investors may be in another shock as the COVID-19 pandemic continues to grapple the country. As of this writing, there are over 1.2 million confirmed cases and nearly 75,000 deaths in the U.S., per Worldometers.
With the continuous hit of the virus, it may also devastate the private sector. Some of the country's biggest companies, like Amazon and Apple, have reported a lower income. They also warn that their revenue may continue to dip in a few months since consumers are more cautious today. Businesses, too, expect that there will be a crash position.
"Companies have no idea what is going to happen whatsoever," Ed Yardeni, president of Yardeni Research Inc., said. Although he admitted that he's an optimist, this situation would make everyone a realist, as there would be "after-shocks and no V-shaped recovery" after what happened.
With the profit drops and worries about the coronavirus crisis' impact on the economy, it may mean that the stock prices may once again face another trouble. The economy's recovery may take a little longer, opposite of what Donald Trump is predicting.
Although some states in the U.S. are now reopening, a lot of companies have to shell out a considerable amount of money to make sure they can operate safely. Hence, they may avoid rehiring their new and previous employees after the forced nationwide shutdown in March.
Meanwhile, The Guardian noted that Donald Trump has abandoned the fight against the COVID-19 pandemic to put his focus on the economy and the 2020 election. So, critics believe that Melania Trump's husband shows his "clear willingness to trade lives for the Dow Jones."
In a leaked internal White House report, it was revealed that the death toll from the coronavirus might reach around 3,000 a day by June. It is almost two folds of the current 1,750 deaths per day.
However, Donald Trump still scratched the coronavirus task force briefings and made his medical experts insignificant. He now favors his economic officials, who flood the airwaves to urge every state to reopen its economy for business amid the continuous rising infection rates.
