KIENAN DIXON: AFTER YEARS OF CONSTANT ECONOMIC GROWTH, CORONAVIRUS HAS PUT THE UNITED STATES IN A SITUATION THAT IS UNPRECEDENTED.
I SPOKE TO SOMEONE ON THE FINANCIAL FRONT LINES AS THE ECONOMY TRIES TO STAY AFLOAT.
ARHAM KHAN IS A RESEARCH ANALYST FOR EDEN CAPITAL INVESTMENT GROUP IN LOS ANGELES.
ARHAM KHAN: THE ECONOMY WAS STRONG. IT’S PROBABLY THE STRONGEST IT’S EVER BEEN IN HISTORY.
KD: THEN, CORONAVIRUS HAPPNED.
AK: RIGHT NOW, IS PROBABLY THE MOST UNCERTAINTY THAT YOU’VE EVER SEEN. IT’S PROBABLY THE MOST UNCERTAIN THAT IT’LL EVER GET, BUT IT’S ALSO BETTER THAN WHEN THE PANDEMIC FIRST CAME OUT.
KD: KHAN SAYS THAT UNCERTAINTY HIT THE INDUSTRY.
AK: RIGHT NOW, IS REALLY A DIFFICULT TIME FOR MOST PEOPLE TO UNDERSTAND WHAT’S GOING TO HAPPEN TOMORROW, OR WHAT’S GOING TO HAPPEN IN A FEW DAYS OR EVEN A FEW MONTHS.
KD: SINCE CORONAVIRUS HIT THE UNITED STATES EARLIER THIS YEAR, OVER 40-MILLION PEOPLE HAVE FILED FOR UNEMPLOYMENT WITH COMPANIES LAYING OFF AND FURLOUGHING EMPLOYEES AT AN ALARMING RATE.
THE COUNTRY SAW A LIGHT AT THE END OF THE TUNNEL WHEN NEW YORK REOPENED THE NEW YORK STOCK EXCHANGE AFTER TWO MONTHS.
KHAN SAYS THE FUNDS PROVIDED BY THE FEDERAL RESERVE IN THE CARES ACT CAN ONLY LAST FOR ABOUT A YEAR.
AK: IN THE SHORT TERM, THEY’LL BE ABLE TO SUPPORT THAT, YOU KNOW, EVERYBODY GOES BACK TO WORK. ALL THESE COMPANIES WILL HAVE FUNDS TO EXPAND OR BRING BACK PEOPLE. IN THE LONG TERM, WE’LL START TO HAVE REAL BIG PROBLEMS THAT WE’VE NEVER SEEN BEFORE.
KD: WHILE THE STOCK MARKET IS PERFORMING WELL, IT IS BECAUSE OF MONEY FROM THE FEDERAL RESERVE THAT IS BEING PUMPED INTO IT, AND MAY NOT BE INDICATIVE OF WHERE THE ECONOMY CURRENTLY IS.
IN LOS ANGELES, I’M KIENAN DIXON, NCC NEWS.
Coronavirus crippled an economy that had been growing since the real estate industry collapsed in 2008.
Unemployment rates were at their lowest in years while the stock market and economy continually performed well, with investors netting returns of 15%, well above the average of 6.5%.
Arham Khan is a research analyst for Eden Capital Investment Group in the Los Angeles area. The 24-year old has found success in an industry that is constantly changing, even more so now.
“Right now is probably the most uncertainty that you’ve ever seen. It’s probably the most uncertain that it’ll ever get, but it’s also better than when the pandemic first came out,” Khan said.
The stock market is hitting new highs in the most unlikely of times. This is due to liquidity from the Federal Reserve being pumped into it to allow the numbers to continually grow.
Khan warns that while the stock market is showing positive signs, it is not entirely indicative of what the economy is doing.
Still, time is running out and a vaccine is necessary for the country’s economy to return to normalcy. Khan says that there may be just one year left of the Federal Reserve putting money into the stock market and citizens’ pockets until the nation runs into issues such as inflation.
“In the short term, they’ll be able to support that, you know, everybody goes back to work. All these companies will have funds to expand or bring back people. In the long term, we’ll start to have real big problems that we’ve never seen before.”
