PITTSBURGH (KDKA) — While coronavirus numbers are soaring across the country, the stock market — recovering from a record-shattering loss in March — also experienced a sudden surge.
“When the stock market is doing well, we can expect that the economy will follow in the same direction and this is what got everybody excited,” Risa Kumazawa, an associate professor of economics at Duquesne University, said.
Struggling consumer sectors like travel, hospitality and specialty retail are gaining steam again. Shares of Amazon, Netflix, Zoom and other stay-at-home staples have slumped as people prepare for the economy to more fully re-open.
“These are the industries that won’t fare well once everybody gets vaccinated,” said Kumazawa.
But before scrambling to invest, Frank Ruscetti, the executive chairman of Harvest Financial, said that “nothing is cast in stone. The markets are incredibly emotional. And today is the perfect example of emotion running amuck.”
Experts suggest young people take advantage of the rising market and make investments.
“You have the most important ingredient necessary to be a successful investor and that’s time,” said Ruscetti.
But older investors are advised to trade defensively and consult with their advisors about possibly removing some chips from the table.
“We don’t have time to erase mistakes. Young people, put it in and don’t look because it’s a wild ride,” Ruscetti said.
While some believe the results of the presidential election are also having an impact on the market, economists suggest it is hard to differentiate which event is having the most influence.