The U.S. still struggles to control the pandemic, the economy is shaky, unemployment is high, and educational institutions are unable to open as usual, with uncertainty about how effective online teaching will be.

Protests regarding social issues continue. The current government leaders are under stress as elections approach, and financial aid for citizens will end at the end of July. Millions of families may face homelessness due to inability to pay mortgages or rent. Many people's health insurance is tied to their jobs; without a job, there is no health insurance. The economic situation at the family level is very precarious, etc.

In just the past 15 days, the number of Americans infected with COVID-19 has increased by over 1 million, bringing the total to over 4 million cases, with more than 144,000 deaths. Additional estimates suggest that by the end of this year, the death toll could reach 300,000.

Yet, the indices of all three major U.S. stock markets have risen as if they are unaffected by these issues. Within a month, the Dow Jones index rose by +4.74%, the S&P 500 by +6.08%, and the NASDAQ by +5.57%.

Popular companies have been rewarded by investors over the past month as follows:

Apple +2.28%, market value $1.61 trillion.

Microsoft +0.75%, market value $1.54 trillion.

Amazon +9.68%, market value $1.49 trillion.

Google +4.61%, market value $1.04 trillion.

Alibaba +12.20%, market value $675.72 billion.

Tesla +48.62%, market value $280.64 billion.

The convenience and speed of trading stocks and exchanging information today, along with the fact that most people are working from home, may be factors contributing to the lively activity in the stock market. It is possible that Americans are starting to accept the reality that life will not return to how it was before. They are beginning to see what the new way of life is.

Online trading has surged, initially driven by necessity, but has now become widely adopted due to its flexibility. Working and studying online has forced everyone to adapt and learn, as there are no transportation options, especially regarding cars, leading to a new focus on clean energy. Stocks of technology companies that meet consumer demands and visions, especially among the younger generation, have gained recognition and confidence, as evidenced by their rapidly increasing stock values.

It seems that current investors are prepaying capital to companies to produce goods and services that align with their ideals and visions. They are willing to take risks to exchange for a new way of life, without analyzing costs and profits to assess stock prices as meticulously as in the past.

Analysts from Goldman Sachs, who typically have significant influence in guiding investor decisions, have assessed that Apple's stock price is too high and should be adjusted down by about 30%. However, Apple enthusiasts have responded by increasing their investments, driven by faith in the company's vision and policies, leading to a quasi-cult following. Many are eagerly awaiting the iPhone 12, featuring 5G technology, expected to hit the market by the end of October with a projected 350 million units, which could further boost stock values.

Notably, the market value of Apple alone exceeds the combined value of all companies on the South Korean stock exchange.

"Out with the old, in with the new." General Motors produced 2.9 million cars last year, with a current market value of $37 billion, which pales in comparison to Tesla, which produced only 367,500 electric vehicles last year but has a stock value of $280 billion, as investors look towards the bright future of the Cybertruck and SpaceX.

Overlooking the current reality and investing with confidence in the future of companies may signal broader political and economic trends in America and the world. Americans may be starting to overlook the shortcomings of the current administration and adapting to the present reality, patiently waiting for the opportunity to rectify things through the presidential election on November 3rd.

Even though the current leader tries to shift focus to external rivals and enemies, blaming several allied countries, international relations may become increasingly strained as the election approaches. An example is the closure of the Chinese consulate in Houston, Texas, citing it as a source of support for violations of American law, data theft, and intellectual property infringement, which is seen as a diversion from the real issues at hand.

If the U.S. gets a new president who takes office on January 20th next year, a large-scale investment revival is expected, particularly in infrastructure, clean energy, healthcare, education, and high technology. The stock markets in America and around the world are likely to surge again. Those who are not yet ready to invest in the stock market should keep an eye on American politics during this period; opportunities to invest in companies with clear visions and capital to shape the future will soon arise.

As for hopes of controlling the pandemic through vaccines, it will require cooperation from all parties, including research, testing, investment, production, and distribution of vaccines, which will be most effective with coordinated management focused on public health. If we are lucky, we may have access to vaccines within six months, and improvements in efficacy are expected within two years.

In the meantime, invest in your health and that of your family to the best of your ability. We must not be careless. Thailand is fortunate to have unity and discipline as its foundation. Here in America, I must be very cautious as some people stubbornly disregard the common good. Everyone has different burdens to bear. We, who are mindful, will not be discouraged and will continue to spread compassion to our fellow humans.

SOURCE: www.bangkokbiznews.com