COVID’s Effects on the Stock Market

Photo Credit: Avery FitzSimmons

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Brycen Osborne, Reporter

  COVID-19 has drastically affected the lives of many, but not so much the Stock Market. Most thought the Coronavirus Pandemic would be the end for the Stock Market and the economy, but that is not the case. 

   Joe Page, a managing partner of The Whitlock Company, an accounting firm, answered the question some Americans were asking: Is America heading towards an economic crisis?

   “By some measures, we are actually climbing our way out of a recession right now, but certain parts of the economy remain in crisis,” Page said. “The Federal Reserve has warned that without further stimulus, we are likely headed for a deeper economic crisis.” 

   Jack Ballew, the owner of Ballew Saw and Tool Inc, said he did not think America is in an economic crisis.

   “I don’t think so. Especially if Pelosi gets her way for the stimulus checks. After a the stimulus runs out, I suspect we will have a recession,” Ballew said. 

   Earlier this year, a bill was in the process of becoming a law, that bill would remove all Chinese stocks from the Stock Market. 

   “If investors were forced to sell those Chinese stocks, then that would of course drive down the price of those stocks as well as be a drag on the overall market. It may also provoke countermeasures from China that would have similar negative effects,” Page said. 

    If the bill were passed, business owners like Ballew would be greatly affected.   

   “If the Chinese stocks meet all the requirements to be listed, then they should be allowed to stay,” Ballew said. 

     With quarantine and Americans not being able to use their money like normal, the value of the dollar would change. 

   “With the onset of the pandemic, investors flocked to safety and that drove up the value of the dollar,” Page said. “As the global economy gets back on track, people will become less risk averse and that will likely decrease the value of the dollar relative to other currencies.” 

   Ballew works with money and manages his own money every day, he would be able to tell if the value was shrinking.   

   “I think it has shrunk a considerable amount,” Ballew said.  

   An IPO is an “Initial Public Offering,” that’s when shares of a company are offered to public investors, with the pandemic, things have not always been the same. 

   “You could certainly research this but my sense is that IPOs were delayed in the spring when the virus first came on the scene and then resumed in the summer. It seems like there has been a fair amount this year” Page said.