Market Continues Recovery As Dimon’s Words Soothe Investors

Credibility is a leader's currency. With it, he or she is solvent; without it, he or she is bankrupt. - John C. Maxwell

With a much more difficult economic environment prevalent across the United States, people are uneasy, worried, and understandably upset. It is in trying circumstances when you are best able to evaluate those in charge. The most high profile areas of leadership are in politics, sports, and business. The general public continues to be skeptical of those in charge. It is understandable. In professional leagues, the high salaries, lack of compassion and loyalty for fans, and less than stellar behavior by players doesn’t help credibility. Many of the leading corporations across the business universe are seen as entirely focused on profitability without any concern for the public welfare. The top executives are viewed as selfish and greedy. Energy, pharmaceuticals, banks, and the technology arena are prime examples. In politics, at every single level (city, county, state, federal) and in any capacity (assemblyman, mayor, governor, congressman, Senator, President) there is outright disbelief or hostility of what is said and done. In many cases, it is for good reason. In this kind of environment, if you are operating or investing in a business, you are facing doubt. Investors trust those who prove they are reasonable, fair, and acting in the best interest of their clients. With this in mind, let’s look at what is currently taking place across our land.

The biggest piece of the working population in the United States resides in the small business segment. It is precisely the place where obstacles are being thrown up to make it more difficult for people (owners and employees) to provide for their families. Many businesses have been closed for months. Workers have been let go. Owners are waiting for loans or other government assistance. State governments continue to make it harder for many industries in service or travel related areas (airlines, hotels, casinos, hair and beauty salons, Pilates, gyms, etc). Restrictions on capacity and social distancing guidelines make it very difficult, if not impossible, for these enterprises to operate profitably. What makes the issue even harder for business owners to accept is the lack of awareness and understanding by public officials. For example, here in Nevada this week, Governor Sisolak was scheduled to hold a press conference on Tuesday outlining ‘Phase 2’ of the reopening plan. He had to cancel the press conference because he reportedly may have been exposed to someone with the Covid virus. After canceling the presser, government officials said the Governor would post a video outlining the phase two details. The video never showed up, at least not in a timely fashion. If you want more proof, look at what took place in Michigan with the Governor’s boat. In Virginia, the Governor ordered everyone to wear a mask. You can get more evidence by looking at California, New York, New Jersey, and Hawaii, too. It’s hard to imagine, but this might be the tip of the iceberg.

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Adam Reynolds 1 month ago Member's comment

What does Dimon base his belief of a V-shape recovery on?