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COVID Vaccines, Stimulus Packages, and the Stock Market Roller Coaster

stimulus and the stock market

COVID Vaccines, Stimulus Packages, and the Stock Market Roller Coaster

Since the World Health Organization declared COVID-19 a global pandemic back in March, people around the world have been waiting with bated breath for news that a vaccine is forthcoming. In the U.S., we’re also wondering when — or if — we will get another economic stimulus package like the CARES Act, which provided Americans with direct payments, expanded unemployment benefits, and made low-interest loans available for businesses. Investors have been watching the news closely, hoping to hear something that will give them hope for economic growth in the future. While it hasn’t all been bad news, the stock market’s performance has been rocky since the beginning of the pandemic and continues to be while Congress is trapped in a stalemate attempting to pass another round of stimulus. In 2020, news about COVID-19 vaccines, stimulus packages, and the upcoming election have had a profound impact on economic performance and retirement investing, rattling the stock market almost every day. While stock investors watched their investments ride a roller coaster all year, consumers in the Crash Proof Retirement ® System have remained safe from all of the volatility.

Stimulus Package News
When the COVID-19 pandemic arrived, it spurred a wave of business closings here in the U.S., and supply chain problems all around the world. As a result, the stock market quickly tumbled from its record highs and went into recovery mode as the country was plunged into an economic recession. Of course, Wall Street bankers weren’t the only ones feeling the pinch; millions of working-class Americans were laid off or furloughed as businesses struggled to find a way to continue operating safely during the pandemic if they could remain open. As a result, Congress passed the CARES Act on March 27th, granting some relief to citizens and business owners. Markets rose steadily in the months after the CARES Act was passed, but as certain provisions of the Act began to expire in late July, Americans eagerly awaited an announcement about a second stimulus package.

Unfortunately, legislators were unable to come to an agreement before expanded unemployment benefits expired and followed by three months of deadlock on Capitol Hill, Americans continued to lose hope that another round of relief would be passed before election day. Business owners also found that their stimulus funding was quickly running out, making investors nervous. Over the Summer and into the Fall, markets became unpredictable. Any news about stimulus talks had the potential to make the Dow rise or fall hundreds of points overnight. While concrete information certainly affected the economy, even the vaguest statements — like a tweet by President Trump, or a brief quote from House Speaker Nancy Pelosi — had the potential to send markets reeling. Stuck in the middle of all of this were the American people, many of whom had their retirement savings at the mercy of the volatile stock indexes.

COVID Vaccine News
With over 225,000 Americans passing as a result of contracting the virus, any news about a vaccine is certainly welcome these days, and the markets respond very clearly when that news hits the press. In August, MarketWatch reported that vaccine hopes were driving the stock market’s rally – boosting the S&P 500 as much as 6.5 percentage points since May. Of course, it’s currently October and a vaccine has not materialized. When Johnson & Johnson paused their vaccine trial in mid-October due to an ill test subject, the S&P dropped 100 points over the next week. While trials have resumed, investors may not be able to stay hopeful that the economy will recover without some positive news regarding a vaccine very soon.

Should Seniors Ride the Stock Market Roller Coaster?
As investors can see, the stock market is unstable and extremely volatile. The COVID-19 pandemic has exposed just how fragile the health of the stock market can be and how little control individual investors have over their at-risk retirement savings. While younger investors may be able to ride out this rough patch and rebuild their nest eggs, seniors in or near retirement do not have the same luxury. The coronavirus presents unique challenges to seniors, not just because they carry the highest risk for contracting and dying from it, but also because the market volatility that the virus creates has the potential to wipe out years of financial gains overnight. While pharmaceutical companies have so far failed to produce a vaccine for the virus itself, it is possible for seniors to vaccinate themselves against market risk and volatility.

Crash Proof Retirement ® has a dedicated team of licensed professionals that can prescribe peace of mind in retirement with their exclusive Crash Proof Retirement ® System. Our licensed retirement phase experts will educate you about how the Crash Proof Retirement ® System can protect your retirement savings with safe, proprietary Crash Proof Vehicles. These vehicles are specifically tailored to meet the retirement needs of an investor and prevent financial viruses from infecting their nest egg. The Crash Proof Retirement ® System has already immunized more than 5,000 consumers from market risk and turmoil. To find out more or to schedule a meeting with one of our licensed retirement phase experts, call 1-800-722-9728 or visit our website at crashproofretirement.com and pull your investments off the COVID stock market roller coaster.

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