COVID Market Crash

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Here we go again. The stock market is dropping today as a result of all the scary news reports over the weekend that another wave of COVID is starting to gain momentum. Yet, here in Minnesota, the mnhealth Twitter account just announced that COVID-19 cases are down dramatically and that they will no longer be posting daily situation updates. It sure looks like the federal government is trying to scare those who have not been vaccinated. Unfortunately, the stock market doesn’t react well to negative news. Meanwhile, we have a drought, wild fires, inflation, global warming, and social problems to deal with. Looking at a chart of the Dow Jones Industrial Average, we could be in for a 10% correction. That would be a drop back to the 30,000 level. As of noon today, the Dow is down 2.5%, to around 33,800. Last week I downsized some of my mutual fund positions that had run up. I probably should have sold more, based on what is happening in the market today. Eventually, stocks will become oversold, and people will rush to get back into the market. But, it could be a while before that happens. Its going to take some kind of assurance that the latest COVID wave isn’t going to cause businesses and schools to close and mask wearing to become mandatory again. One solution would be to make house calls on anyone who has not been vaccinated and offer them the shot. If they refuse, then they would have a fee added to their income tax as a penalty. If they later decide to get vaccinated on their own, before the end of the tax year, then the penalty fee would be removed. Not sure how well that would work in a free country. Some will complain that their medical rights are being violated. But, I think the people who have yet to be vaccinated, need to be confronted with vaccination, so that their decision can be documented.

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