Rolling Reentry is Possible for the Economy Next Month

April 13, 2020
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According to experts, some areas of the United States and its economy could start to reopen as early as next month.

Businesses have been impacted heavily by the Coronavirus pandemic, with more than half of the nation’s states on lockdown orders. While essential businesses like grocery stores and logistics companies have been allowed to operate, countless companies have been forced to ask staff to work remotely or close their doors altogether. Service industries, especially those related to hospitality, have been the worst hit.

There could be good news on the horizon for struggling companies and the tens of millions who have been made unemployed or furloughed. White House advisor and infectious disease expert Dr. Anthony Fauci said on the weekend that areas of the economy could begin to reopen in May.

Will Americans See a Soft Opening of the Economy?

Speaking to CNN on Sunday, Dr. Fauci said that “I think it [opening of the economy] could probably start at least in some ways maybe next month. We are hoping by the end of the month we can look around and say, OK, is there any element here that we can safely and cautiously start pulling back on? If so, do it. If not, then just continue to hunker down.”

President Trump has echoed the sentiment. With the 2020 Election drawing ever closer, Trump is anxious to get the economy moving again. Trump said in an interview on Saturday that “People want to get back to work.” He told Fox News that a group of the top leaders in “virtually every field” are discussing reopening the economy, and a decision will be made “fairly soon”.

Investors should be aware that reopening is likely to be slow and in stages. The area of the country, the progression of the outbreak, and the threat of a new outbreak will all be considered.

Scott Gottlieb, the Former Commissioner of the Food and Drug Administration, offered further insight over the weekend. He told CBS News that “There’s a lot of pressure right now from the business community on not just the administration but Governors as well to start reopening the economy.”

Gottlieb, like Fauci and Trump, said that the reopening would be gradual. He suggested that some states may only allow companies to have 50% of their workforce returning at any given time.

Investment Markets are Ready to Rebound

Equity markets showed some signs of recovery last week, with a handful of analysts claiming that stocks have already seen the worst of the Coronavirus impact. While it’s yet to be seen how low stocks can truly go, knowing that the government is working on a strategy to safely reopen the country and its economy will be reassuring to investors at every level.

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