NY Stock Market Unstable Moves Experts "A Significant Time to Recovery" March 5 4:50
New York stock markets have been volatile since last week due to concerns about the spread of the new coronavirus, but experts have noted that it will take some time for the stock price to recover. He also pointed out that central banks 'interest rate cuts and governments' stimulus packages are not enough to stabilize stock prices.
Howard Silverblatt, a senior analyst familiar with share price developments, first commented on the prospect of additional rate cuts in connection with the Fed's urgent rate cut, and said, "The rate cut will fund markets. `` While the government's fiscal spending will give back to its citizens, what the market sees as `` bottom '' is that the transmission of the new coronavirus stops, '' said Monetary and Fiscal Policy. In other words, he acknowledged that stock prices were not enough to stabilize stock prices.
Regarding the impact on the U.S. economy, Silverblat said that 70% of the U.S. economy is "consumer consumption," so if school closures or factory shutdowns spread, consumption could cool down, causing a sudden recession. Pointed out.
In addition, Silverblatt said opposition and Democratic candidates for November's presidential election in which former Vice President Biden and radical Senator Sanders will be competing in economic policy as factors that keep stock prices volatile. Are listed.
"This has also made stock prices extremely volatile. Democratic candidates may be decided and may continue until the party convention in July," said Silverblat, a presidential election for the spread of the new coronavirus infection. This indicates that it will take a considerable amount of time for stock prices to recover.