Fox News contributor John Layfield and Kaltbaum Capital Management owner Gary Kaltbaum argue that if the stimulus continues and a COVID-19 vaccine is distributed in the very near future, markets will experience an impressive rally in 2021.
Vaccination against COVID-19 combined with Congressional financial relief has the potential to revive the US economy this summer, said JPMorgan CEO Chase Jamie Dimon.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| JPM | JP MORGAN CHASE & CO. | 138.64 | -2.53 | -1.79% |
“I think you will have a better second half because the vaccine is coming and the fiscal stimulus,” Dimon told reporters on Friday after JPMorgan released stronger-than-expected financial results late last year. “In short, there is a lot of pent-up demand and, hopefully, optimism that we are going to get over this mess.”
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His hypothesis, if confirmed, would mean a welcome relief in the second half of 2021 from a gloomy recession that accompanied a pandemic that killed more than 388,000 Americans – a higher death toll than in any other country, closed hundreds of thousands of people. small businesses and made unemployment soar.
An initial stimulus package that sent checks for $ 1,200 to many taxpayers and a follow-up measure at the end of last year helped Americans who definitely needed help, “people who are unemployed, small businesses, some of the low-income people to who can make the bridge, I hope, which will be a much stronger economy “, added Dimon.
The USA’s largest creditor, JPMorgan Chase, has a broad and unique perspective on the economic health and sentiment of the country.
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Congressional action on the second coronavirus relief package and vaccine progress has enabled the New York-based company to release $ 2.9 billion in loan reserves in the last three months of 2020, although it still retains a considerable US stronghold. $ 30 billion against what executives called “significant short-term economic uncertainty.”
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It is not yet known how further relief measures under Democratic President-elect Joe Biden will affect the company and other American banks.
The former Delaware vice president and senator, who is due to take office in less than a week, detailed a $ 1.9 trillion spending proposal on Thursday night, which he said was vital in helping Americans face the coronavirus crisis.
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“About 400,000 small businesses have permanently closed their doors,” said Biden on Thursday in Wilmington, Delaware. “A crisis of deep human suffering is in sight and there is no time to lose.”
If approved by Congress, his plan would increase the optimism fueled by the preliminary, albeit interrupted, distribution of vaccines from drug manufacturers, including a partnership with Pfizer and BioNTech and the modern prescription drugmaker.
Initial studies of a third vaccine, from Johnson & Johnson, show receptors developing immunity after a single dose, compared to the two needed for each of the previous inoculations.
“It appears that in June or July, many people will be vaccinated. People may need a few months after that to feel comfortable returning to work,” said Dimon. “You see people wanting to go back to work if they feel safe, and the vaccine will be a big part of that.”