The Inevitable Blame Game

There was a point in time during the pandemic when the war of words continued to escalate over who’s to blame for the COVID-19 a.k.a Coronavirus outbreak. With its origin being Wuhan, China, sentiment had shifted from the unknown to intentional. It was quite the “conspiracy theory” – (a.k.a. entertainment).

The attempt to push blame on a laboratory in China, had been met with a great deal of uncertainty. Secretary of State Michael Pompeo was on a rampage building a case around this intentional “leakage” of the outbreak. These types of accusations would have been detrimental to everyone; not just China.

Do you all remember a “tiny” trade war deal between China and the States that shook the markets in the previous year before the “VID” unleashed its global fury? Well, that deal was far from done. At the time, with the global trade deal lingering over heads of the two global giants, these types of accusations would have led to far greater problems from Main Street to Wall Street.

Whoever was to “blame”, the reality is that countries were deep underwater. To no surprise, European reports were showing a major decline in retail and manufacturing activity in April 2020; which is obviously mirrored across the globe.

For example, the job layoffs in Spain had reached levels never seen before. Not opening the country back up immediately, would have been dire to the country’s economy for years to come – and today’s reality isn’t too far from that truth.

Unfortunately, that story echoed from country to country and continent to continent. Yes, had to get back to work, but it also had to be handled with intelligence from all of us. Be smart or risk another wave of cases much greater than what was being seen already. In fact, that’s exactly what happened – and still is to some degree. Variant after variant gets introduced into society, but we are much better equipped to handle them then during the earlier pandemic days.

The states were loosening up the lock-down, however numbers that were coming out of Texas during the “loosening days” were staggering. Cases were escalating because the public wasn’t taking the social distancing requirement seriously.

The biggest issue that we are all were going through, was impatience; it’s a difficult beast to tame. That said, the Street were showing their optimism; despite the highly negative economic reports. Thing is, numbers don’t lie and future predictions were far worse than numbers already provided.

May 2020 trading kicked off and it was bloody. That sentiment spilled over into the following week’s session and it was an interesting week in the markets, to say the least. There was somewhat of a shift to kick of that May trading month. Had the optimism on the Street began to subside? And/or were the numbers beginning to be too large to ignore? Well, we all know the answer to that.

It appeared that concerns were lurking around the corner of a possible U.S. retribution against China with regards to the COVID-19 outbreak. IF that got underway (and we all know how Trump was), then the probability of that bull ride we all experienced, could have come to an abrupt halt, and that would have increased exponentially.

Regardless of how things turned out during that time in the markets, the best advice was and always is, to stay in your trading lane. By doing so, there’s a high probability that you’ll come out of most trading messes unscathed.

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