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Strategists warn about the overvaluation of the market and rise in the percentage of unemployment.


Due to the Coronavirus pandemic, most employers remove employees by stopping their jobs. That tragedy leads to a huge number of jobless claims. Therefore, the condition of the Monthly Jobs Report is not admirable. Some shareholders get rose more than 1.5% during this time period. Some have forgotten the losses in 2020 and directed to a positive position for this year. According to the quarterly results, some have reached new peaks this week. The Technology and Health Care services help for the rising during this crisis. Furthermore, nearly 20.5 million employees had to lose their jobs in April 2020 due to the economic crisis raised during the lockdown period because of the Coronavirus pandemic. That leads to rise the unemployment up to 14.7%. unemployment leads people to depend on external support to survive.

Views of James McDonald, the CEO of Hercules Investments regarding the stock market and unemployment.

According to James McDonald; normally ups and downs happen in the stock market. There is a rising after a dropping. After a huge crisis normally a rising can identify. But as his experience through years, the massive dropping of stock market happened within these 6 months. That caused a recession even after selling 30% of shares. As James McDonald’s view; individuals engaging in technology and health care fields live with positive senses. Because they can exist within this crisis. Except for the technology and health care sectors, there is a double price earning for stock market valuations. Nowadays, there is an overvaluation of nearly or more than 50%. And this is the highest point of the crisis. He believes this condition may be temporary. And he doesn’t believe the solutions of the Federal Reserve towards the crisis.

As James McDonald’s view; the intact valuations of the market will have wrong expectations because of liquidity. Then the market will drop quickly because of the liquidity. As he thinks, there may be nearly 15% of the change in price. According to him, shutting down of ½ of the number of businesses in the country, losing the jobs of 1/3 of people of the country may cause dropping of earning. And this will affect the economy of the country in the worst way.

Views of Anthony Chan, the former chief economist of JP Morgan Chase regarding job opportunities and unemployment due to economic backdrop.

According to Anthony Chan’s view, there may be new essential job opportunities in health care and technology sectors of the society. Because the current severe situation is handling by health care and technology sectors. So they will need the help of more number of employees. Therefore, job opportunities can be replaced by the people who lost their jobs due to the economic crisis. He believes time will lead to seek social distancing jobs to overcome this crisis by saving the health of people too.

As Anthony Chan believes, due to the severity of the economic crisis; 30% - 40% of jobs that lost may not come again quickly as expecting. Because of the unexpected Coronavirus pandemic, nowadays society thinks more about health care and prevention of such kind of natural disasters. So, society pays considerable attention to protecting health. Therefore, in the future there may be an admirable partnership between technology and healthcare sectors. Because those two sectors have combined and walk in hand in hand during this severe situation. So, this partnership may be helpful to face the upcoming job crisis.

According to clever strategists and economists view; we are walking to a future with an economic crisis. But there are some sectors powerful even at this crisis. Those may be the silver line in the dark cloud. It is a belief of economists. They expect the society will adapt to the situation soon.

Strategists warn about the overvaluation of the market and rise in the percentage of unemployment. Strategists warn about the overvaluation of the market and rise in the percentage of unemployment. Reviewed by ViralBlossom on July 31, 2020 Rating: 5

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