Analyse SWOT Résidence Château du Mée

In this video, we can see a man who explains us that despite the actual situation with the virus and that many people became out of work, the stock market is doing pretty well. His indicators have never been so hight. The man tries therefore to understand why.

According to him, there are four reasons which explain the situation.

First of all, the indices which affect the stock market and in particular the dow and the SandP 500 are also affected by big companies, so the evaluation of these companies affect directly the stock market. So in time of crisis, these big companies get away much better than others.

Then, there is a second reason which is tech stock. In fact, technological companies have a huge impact on the dow and the SandP 500. Companies like Amazon, Facebook,

Google, Apple or Microsoft. In only one year, they’ve got 50percent in value.

Afterwards, the third reason is that people speculate. Indeed, they invest in companies like Tesla, thinking that in one year, the stock will cost much more. And the unemployment rate is completely different because changes in the economy take time to affect this rate. So, the fact that lots of people lose their job doesn’t affect ultimately on the stock market.

Finally, the last reason is the inequalities and more particularly people who own stocks.

The man tell us that these owners are among the wealthiest. Indeed, during the beginning of 2020, almost all of the stocks were held by the wealthiest 10 percent of the united states households.

At the end, the man talks about another reason. The Fed has put trillions of dollars into the economy’s stimulus. So as we can see, the stock market isn’t the reflect of the actual situation of the country.

I think that it’s something that will continue afterward but with a smaller gap. In fact, the end of the crisis will benefit to the economy of the country and when I say economy, I think about people who have lose their jobs. I think that there will be a sort of economic boom similar of the one at the end of the world war 2. Companies will need human labour to revive their activities to move forward. But, despite this potential economic boom, largest technological companies become increasingly important in our contemporary society. If there is no actions implemented in the future, the evolution of these companies will continue to benefit only to the same persons, the wealthiest. And this gap will become much more important.

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