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Equity markets with impressive rally since March slump
Jim Cramer picks up bull mode on wearing MN protection
Retailers are role models with the introduction of a mandatory mask
Although the corona pandemic is still not over and it looks much more likely that a second wave of infections could roll over the world, this is not apparent in the international stock markets. The March lows are already far away again. Although there are always setbacks, some indices such as the tech index NASDAQ Composite were able to reach new record highs despite the ongoing crisis.
No wonder that some experts, such as Mark Cuban, are warning of the formation of a bubble in the face of this rally. Not so CNBC personality Jim Cramer, who recently announced in the program “Squawk on the Street” that the stock market could continue to go uphill. However, this is linked to one condition: wearing a mouth and nose protector.
Still no mask requirement in the US
Because in Germany, wearing a mask in public transport and in retail has long been mandatory nationwide, the US government has so far been unable to bring about such a step. On the contrary, US President Donald Trump the corona virus has played down for a long time and even threatened legal action against states that wanted to introduce a mask requirement. In the meantime, however, even at Trump – whether for tactical reasons or not – there has been a U-turn with regard to the virus.
Consumer stocks could benefit from curbing the virus
However, should more people wear mouth-to-nose coverage in the US, stocks that are tied to US economy reopening plans in particular could benefit, argues Cramer. If the corona virus is better contained, restrictions could be loosened and consumption increased accordingly.
In this context, the “Mad Money” moderator praised the initiatives of retail chains such as Walmart, Kroger, Costco and Best Buy, which oblige customers to wear a mask when entering the shops. Cramer said: “People don’t want to die for shopping. As much as we like to go shopping, it’s not worth dying for.”
The step would have been worthwhile for retailers as well. While, according to Cramer, Costco initially expected build-ins due to the introduction of a mask requirement, on the contrary, sales had increased by 11 percent. Accordingly, there is still potential for the stock market to continue to rise: “You have to let the cloud stocks go, but many other stocks could also attract,” said Cramer, referring to the rapid rise in tech stocks during the pandemic, which among other things the accelerated digitalization benefit.
Now it remains to be seen whether Cramer is right in his assessment.
Editorial office Forex-news.com.net
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