Try These ETF Strategies As The Coronavirus Crisis Worsens

Investors seem to be spooked by the resurgence in coronavirus cases as they fear that another round of business restrictions and lockdown measures might derail the economic recovery achieved so far. The coronavirus crisis continues to be acute in the United States, as the death toll has now crossed 130,000.

Infectious diseases expert, Dr. Anthony Fauci, has said that the United States is “knee-deep” in the first wave of the pandemic, even as the number of coronavirus cases has doubled within a week and a half, per a CNN report.

In fact, United States saw the highest number at 60,646 new coronavirus cases reported on a single day on July 9, per the CNN report. Going on, Florida and Texas witnessed a record one-day increase in deaths on the same day. Given the current situation, at least 24 states have paused or rolled back reopening efforts for some time.

Considering the halting of the reopening process in around a dozen states in the United States, Goldman Sachs has revised its growth estimates downward for the U.S. economy for the third quarter of 2020, per a Bloomberg article. Going by the article, the economy is expected to see 25% growth in the third quarter in comparison to 33% predicted previously.

Consequently, the U.S. economy is expected to fall 4.6% in 2020, against the previously predicted 4.2%, as stated by the article. In this regard, the economists commented that the “combination of tighter state restrictions and voluntary social distancing is already having a noticeable impact on economic activity,” according to the article.

Notably, the outbreak has already caused an unprecedented collapse of economic activities, as governments had to shut down commerce and implement social-distancing measures in an effort to contain the spread of the virus. Although necessary to control the coronavirus outbreak, the halting or rolling back of the reopening process may hurt the investors sentiments and optimism about economic recovery in the near-term.

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Noah Pomerance 3 months ago Member's comment

If you had to choose one, which would it be?