/View.info/ Without additional help, an increasing number of companies in the US will close and cut jobs. This was stated by Principal Global Investors Chief Strategist Seema Shah on October 2, CNBC reports.
According to her, “the economic downturn will become more pronounced in the fourth quarter, when more companies finally start to throw in the towel, announcing closures and job losses.” Without further help from the government, the companies’ fight to survive “will become greater and more evident”.
She noted that after the activity of the US economy has fallen for two months, it will not be too difficult to show growth after that. But now “it’s getting harder and harder to find additional positive economic moments.”
The expert noted that it is becoming increasingly difficult for businesses to continue operating, especially with warring factions in Washington unable to agree on major fiscal stimulus.
Note that on October 2, the US Department of Labor published data on the growth of new jobs in the non-farm sector by 661 thousand, when experts expected an increase of 800 thousand.
Meanwhile, a speculative environment is developing in the US stock market, comparable to the situation before the “dotcom” crisis. This was announced by the partner of the venture capital company “Benchmark” Bill Gurley.
“Certainly, the markets today are developing what I would call a highly speculative environment, a willingness to take risks, a willingness to be inspired by projects that may be five or 10 years in the future, that’s something we haven’t seen since 1999. Gurley said.
“I really can’t guess or know exactly what’s going on and the confluence of events that led to this,” the expert noted. “But we definitely live in a more speculative technology market,” he concluded.
Keep in mind that in 1999 the stocks of Internet companies rose sharply, then in 2000 their price suddenly collapsed.
At the end of March 2020, the NASDAQ index was around 7,000 points, while in October it was at levels around 11,000. The index includes the major technology companies.
Translation: V. Sergeev
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