https://finance.yahoo.com/news/if-b...-nearly-4000-points-strategist-183358871.html November 12, 2020 Yahoo Finance If President-elect Biden shuts down the US economy, the Dow would drop nearly 4,000 points: strategist 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.
%% Actually you may have noticed DOW had had plenty of trouble on their 52 week chart,anyway; I kept wanting to buy udow or DDM, but their 52 week charts trend to bearish. Did take a small profit on dxd/cant blame the virus on that. Biden's broadbrush on masks ; would most likely help the economy/if ones believes GS...……………………………………………………………………………………………………………………………………………………………...Masks may not help the dow/LOL
Drop 4000 points followed by a face ripping rally of 10000 points after trillions in stimulus and more candy from the Fed
Just as Trump found out, POTUS does not have the authority to shut down the nation. It is up to the states to make their own call.
There is no incentive to shutdown the US economy. If Joe Biden is stupid enough to shutdown the US economy, the US will suffer a recession, much worst than anyone has endured. A lot of businesses have already shutdown, tens of millions unemployed and no stimulus in sight. Only Democrat governors in a concerted effort to destroy the US economy and hurt President Trump's re-election are mainly, engaged in the shutdown. Their extreme liberal states will not have enough monies to bail them out because of their stupidity. Time for reckoning is coming and stupidity cannot bring forth anything good.
Yes, but only up to a fine point apparently. State Supreme Courts have started clawing back at Governors with unbridled executive powers. But more telling, Supreme Justice Sam Alito has made some very public comments the past few days about how Governors and Health Experts have usurped the Constitutional Powers of the State and Federal Legislators when it comes to COVID restrictions. https://www.washingtonpost.com/poli...litos-provocative-unusually-political-speech/ https://www.reuters.com/article/us-...tes-covid-19-stay-at-home-order-idUSKBN22Q04H
Well, Justice Sam Alito is feeling his oats and he just invited some lawsuits into his playground I doubt that he would have done that if he didn't feel confident that they had a better than average chance to prevail.