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If President-elect Biden shuts down the US economy, the Dow would drop nearly 4,000 points: strategist


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2020 Nov 12, 1:41pm   942 views  7 comments

by Eric Holder   ➕follow (5)   💰tip   ignore  

The last thing bullish post-election season investors want to see is a nationwide lockdown to control the resurgent coronavirus under President-elect Joe Biden.

“3,000 or 4,000 [Dow] points lower at least,” veteran strategist David Nelson of Belpointe Asset Management told Yahoo Finance Live on the market reaction to a possible lockdown.

But that may be what investors are staring down the barrel of if COVID-19 infections and deaths continue to rise ahead of Biden assuming power in late January.

Influential COVID-19 adviser to president-elect Joe Biden Dr. Michael Osterholm told Yahoo Finance Live a four- to six-week national lockdown would be appropriate to get the pandemic under control. Osterholm contends the U.S. has a “big pool of money” to pay for lost household wages from any lockdown. The payments to households would continue as a vaccine for the deadly disease is rolled out across the country.

Explained Osterholm, “We could pay for a package right now to cover all of the wages, lost wages for individual workers, for losses to small companies, to medium-sized companies or city, state, county governments. We could do all of that. If we did that then we could lock down for 4 to 6 weeks.”

Investors haven’t taken Osterholm’s comments or the notion of a lockdown too well at all.

The Dow Jones Industrial Average plunged more than 300 points on Thursday, while the Nasdaq Composite and S&P 500 remained sharply lower. Investors booked post-election profits in cyclical and value stocks. In turn, they plowed back into stay-at-home stocks such as Zoom, Snap and Slack.

“The markets wouldn’t like that [the lockdown]. I don’t think the markets are pricing that in at all. This is not new from the Democratic side of the aisle,” added Nelson.

https://finance.yahoo.com/news/if-biden-shuts-down-the-us-economy-the-dow-would-drop-nearly-4000-points-strategist-183358871.html

Comments 1 - 7 of 7        Search these comments

1   NDrLoR   2020 Nov 12, 2:20pm  

Eric Holder says
The last thing bullish post-election season investors want to see is a nationwide lockdown
https://news.yahoo.com/york-lockdown-curfew-bars-restaurants-100049802.html

That's just for starters, you think it would end after six weeks?
2   clambo   2020 Nov 12, 9:14pm  

The pandemic is under control.

A 6 week shutdown will accomplish nothing, particularly compared to a real solution to the problem which is a vaccine.

I’m keeping my fingers crossed that the fraud fails and Trump stays President.

How idiotic can Biden and his kooks be?
3   richwicks   2020 Nov 12, 9:16pm  

clambo says
A 6 week shutdown will accomplish nothing, particularly compared to a real solution to the problem which is a vaccine.


You're looking for a solution to a problem that doesn't actually exist.
4   just_passing_through   2020 Nov 12, 9:56pm  

It's just training for authoritarian control.
5   clambo   2020 Nov 12, 10:04pm  

I don’t believe the “problem” is as serious as the media claims, the CDC said 6% of the deaths were among otherwise healthy people; this makes Wuhan/Coronavirus about as deadly as a staircase (12,000 die per year falling down stairs)
6   Patrick   2023 Aug 25, 12:30pm  

Did the Dow drop 4000 points after Bidet locked things down?
7   RWSGFY   2023 Aug 25, 6:19pm  

Patrick says


Did the Dow drop 4000 points after Bidet locked things down?


Nope.


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