If you have been paying attention to the stock market during the past couple months, then you should know that most stocks after the initial COVID-19 fear are at an all-time-high. We have many stocks that if you have bought back in March 2020, you would have AT LEAST doubled/tripled your initial investment. Congratulations if you’ve done that. If you’re wondering if it’s too late for you to invest, then you are correct. Everything is at an all time high. Either once a week or the following week, stocks will break a new all-time-high price. That’s absolutely insane. Especially in this market with this economy, it’s all too suspicious.
Don’t believe me? That’s all right. Even though many people have stated that “sToCkS oNlY gO uP”, while yes; they are technically true for the time being, in the end this bubble that we are in is bound to pop. And when this bubble pops, man this will be a nasty pop.
Unemployment rate during April 2020 was at an all time high, with the Bureau of Labor Statistics (BLS) reporting that the U.S. employment rate was at 14.7%. According to the BLS, unemployment rate in March 2020 was at 4.4%, 14.7% in April, 13% in May, and 11.1% in June. Many people are still jobless.
Small businesses are hurting the most from this. Small companies that can’t afford to pay their employees have to go on furlough. Who is going to pay the unemployed? EDD with the unemployment insurance/benefits. Unemployment benefits not enough? No worries, the Fed has introduced a Stimulus Check that will grant certain family members $1200. Oh that’s still not enough? Here, the Fed is going to work out a deal with EDD in insuring a “bonus” pay for EDD users. We are basically going to give you an extra $600 a week on top of your EDD payment for the COVID-19 situation.
Loans and loans are being handed out. People need money to pay for things and more. Interest rates are at/near 0 percent, and who knows if one day the interest rates will go below zero. Soon, you’re going to realize how having a 0 percent rate can affect you. Borrowing costs will be increased.
Who benefits from this? The big businesses. Let’s take a look at a couple stocks that have grown in share prices throughout the months. You’ll see how no matter what the situation is, the rich always gets richer while the poor either succumbs to poverty or gets defeated.
Pictured above is the 1 year graph for Tesla. Now at one point, we almost saw Tesla hit $1000 back in early 2020. When the stock market crashed amid to early COVID-19 fear, many stocks plummeted to the ground. Tesla hit an all time low of $355 back in March. Fast forward to July 17, 2020 and Tesla has nearly multiplied its share price by SIX TIMES, to $1794 per share.
Now let’s look at Amazon. I’m pretty sure there is no one in this world that will ever top Jeff Bezos’ net worth. That man is just literally the richest man on this planet. With an estimated net worth of $178 billion, this type of wealth is different in all forms. This is just excessive. Anyways, following the COVID-19 fear, Amazon hit at an average price of $1640 per share. Now? It’s doubled the price. Amazon broke an all time high and hit $3000 per share back in July 6th.
Lastly, here’s Apple. Recently this week, Apple almost made history by trying to break past $400 earlier in the week. It obviously failed. Anyways, there is absolutely NO REASON Apple should be hitting $400 anytime soon in this economy. Stores are being closed temporarily again due to COVID-19 cases rising again. The announcement of iOS 14 wasn’t really a big deal. (TLDW: Apple FINALLY introducing Widgets, while Samsung had that feature years ago)
Everything is just at an all time high now. We have stocks hitting all-time-highs. We have COVID-19 cases hitting all time high now. The US is a joke.