With expanded unemployment benefits officially coming to an end and new vaccine mandates that could boost the current worker shortage across the country, many economists are starting to see the early ‘warning’ signs of a major stock market correction that could take place by the end of the year.
There has been a lot of bad news lately and all of that can add up and place downward pressure on the stock market. The Afghanistan crisis and now a brand new vaccine mandate from the Biden Administration could have a significant impact on the stock market’s growth in the next few quarters.
Companies and businesses have been facing a worker shortage because many citizens have been on unemployment benefits or reluctant to get the vaccine in order to work. This problem might get worse when companies with more than 100 employees are forced to test their employees on a weekly basis or ask for proof of vaccination for the COVID-19 virus.
The stock market has stalled out in recent weeks and could be showing signs of a plunge. This time around, it seems almost impossible for stimulus packages to keep the stock market afloat, especially considering that congress has already passed several stimulus packages in an effort to keep the stock market growing.
Investors may need to be extremely careful as we near the holiday season because there are no guarantees of continued growth at this point in time. Stock market corrections are generally healthy for the market and we haven’t seen a major correction in the stock market since the massive selloff that took place when COVID-19 first became a major national factor within the United States.
Now, we’re only a few months before the end of the year and bad news has already had an impact on several other factors of our society. It wouldn’t be too surprising to see a stock market correction in the coming weeks or months if Biden’s team isn’t able to find a solution to several of the problems that the country currently faces.