Stocks, The Rich, The Poor And COVID19.

I was kindly asked: Why don’t we ever hear that people lose money when the stock market goes down? I also heard from an acquaintance that the government is to blame for why amazon (and others stocks) are trading higher due to government policies restricting businesses to operating during the pandemic.

I kindly replied: Probably because securities go up and down overtime. A position may trade for 8.52 a share today because of hopes of a stronger oil market in the 3rd quarter… but tomorrow be stock is 8.12 because speculators thought that a crisis in Iraq may have an impact on the global oil supply.

I’m from the position that Amazon’s logistics are ahead of its time and therefore… Amazon will increase in valuations regardless overtime. I’m not aware of any small business that can compete with Amazon (or any big corporation) in what they do best. My issue with the government is that it didn’t introduced a solid strategy on how to deal with this COVID19 pandemic appropriately.

Sure, closing trades statewide hurt small businesses, the average American worker who depends on a salary to pay his bills and hit the poor harder. The ultra wealthy is more likely to have monetary reserves to survive the transition from distancing back to normality increasing
the already disparity that exists between the haves and have nots.

The low wages given to American workers for over 50 years have created a new America. A country with a handful of billionaires, a struggling middle proletariat, and too many people who live worse than those living in Brazil.

The ultra wealthy has a supply of capital leading to a much stronger leverage position, I think. Too many Americans have little to no leverage and are currently counting on insecure loans for survival. The pandemic has proven this unfortunate yet real issue multiple times already. I hope I’m wrong about what I’m writing… blessings to you.