Will Stock Markets And Trading Bounce Back After The Covid-19 Crisis?
Kristalina Georgieva, the new managing director of the IMF (International Monetary Fund) is nowhere near convinced that global economies will see much growth for quite some time.
So, even if stocks are appealing at the moment, it’s wise for any regular trader to take a step back and think before rushing into any major share buying spree.
What Stocks Should I Buy For April 2020?
Of course, some stocks will perform well at this moment, for example, the UK supermarket giants are carrying out record levels of business due to coronavirus, but how this will translate over to year end profits remains to be seen.
The same can be said for the Jeff Bezos Amazon empire, which is profiting by $11,000 per second during the US coronavirus lockdown according to recent media reports.
Shares in Amazon increased by around $700 in the month to April 2020, ensuring Bezos retained his spot as the world’s richest man.
That said, as already noted, taking the time to carefully reflect upon any trades could be the wisest course of action for any investor.
Global Economic Forecasts From The IMF
In January 2020 the IMF forecast that 160 countries (82% of all nations) in the world would see increased GDP and associated living standards for the year.
The April 2020 forecast is far more gloomy, and it’s more likely that 170 countries around the world will see income shrink in 2020. That’s 87% of the globe!
Kristalina Georgieva is convinced the Covid-19 crisis will cause an inconceivable world recession, far worse than the depression caused by the financial crisis of 2008.
While speaking to the BBC in the UK, she had this say:
“Epidemiologists are now helping us making macroeconomic projections.
Never in the history of the IMF have we had that.
And what they’re telling us is that the novel coronavirus is a big unknown, and we don’t know whether it may return in 2021.”
Although traditionally the IMF is more concerned with global fiscal affairs, it is getting increasingly involved in economic rescue and encouraging nations to priorities individual livelihoods.
Kristalina Georgieva added: “It is the time that governments should spend as much as they can afford and more, but keep the receipts.
We don’t want to lose accountability and transparency during this crisis.”
She feels very strongly that international organisations and governments need to work together to “target support to the most vulnerable people in the most vulnerable parts of the economy” and also that many countries need financial lifelines now.
She concluded by saying: “We need each other. It is a moment testing our humanity and being together acting with solidarity. We will get to the other side of this.”