Will Trump’s Positive COVID Results Shake Up The Market?

We have all weathered the storm that 2020 has brought upon us, yet the tyranny continues. Millions still remain unemployed, an eviction crisis is on the rise and now our President has tested positive for COVID. America has become the butt of a very bad joke at this point. This year has really hit us hard, especially from an economic standpoint and unfortunately the bright ending is still nowhere in sight. While the past couple months were starting to look up from a market standpoint, COVID had no problem delivering another blow to the market. The question we need to ask is, where's the end of it?

 The global pandemic has had a great effect on investors causing many of them to tighten their grip on their monies. Since the beginning of the year, large investors have been becoming more and more strict on their investment requirements in order to protect themselves from the harsh economic realities that COVID has triggered. However, the announcement that President Trump has tested positive for COVID delivered yet another blow to those seeking funding. According to Peter Essele, the head of portfolio management for Commonwealth Financial Network, “The positive test came...highlighting the fact that we are still in the middle of a crisis; it seems reasonable to assume that markets will be on shaky ground throughout October with the perfect storm of a highly contentious election and a pandemic that remains stubbornly at the forefront.” That’s right, this news was just another reminder for investors that they should keep a tight grip on their cash because the climate is just so unpredictable. 

So you’re probably wondering what this means for future investing for the rest of the year. The truth is, many investors are stuck between cross roads. On one hand, investments over the last couple months have proven to be profitable and the future was looking bright. But with the reality check of Trump testing positive for COVID, investors may be tempted to pause on funding so that they can protect themselves. Many top financial advisors are saying, “investors should remain vigilant and consider some type of portfolio protection, as there remains a very real possibility that the market’s gains over the previous two quarters will steadily erode in the months ahead.” 

 Only time will tell how things play out for businesses seeking capital from large VC firms, but in my opinion, I wouldn’t hold my breath. At the end of the day, these investors are not in the business of helping to boost the economy and potential contributing to creating jobs for the millions of people unemployed at the moment. They are looking after themselves first and foremost. That means if they have to sit on billions of funding dollars to protect themselves from severe financial loss caused by the unpredictability of COVID, trust me they will. Therefore, as a business owner looking for funding, don’t be so quick to put your eggs into one basket, especially if that basket lies in the hands of large funding groups. Be smart and consider all your options and find the right sources that are really going to look out for you and not only the vested interest of themselves.