Investors must now contend with the prospect of a resurgence of Covid-19 infection rate. It may not be in the same locales but new ones. The question, of course, is what does this mean for the nascent economic recovery? Will the country have to go into another general lock-down with all its implications?

The Bull has contended all along that reopening the economy would be accompanied by an increase in virus infections. However, this prospect would be born as a necessary risk balanced against the known damage done by curtailing commerce. Jobs and livelihoods have been put at risk during the first shutdown. Some of these will not be coming back. Even greater damage would be too difficult to overcome.

So, life must go on, with risk. The vulnerable will have to be cautious. Reasonable protective protocols are being employed. But another general lock-down – no! Until we get vaccines that are generally employed, this is our life. Thankfully, treatments are getting better.

The economy will recover, the market tells us so. It will be uneven with winners and losers; the market tells us this too. Just look at which stocks are doing well, and which ones are not. There is opportunity and risk – nothing new.

The stock market has already recovered to a great extent. It will, in an irregular way continue; stay steady, my friends.

The Lonely Bull