The Stock Market and the Economy in Malaysia post COVID19

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During the weekends I watched this YouTube video from the Asian Boss channel where the host interviewed an expert economist in South Korea on the world economy right now about post COVID19 scenarios. I found the interviewee to be very knowledgeable and humble. His points and ideas were all very clearly articulated.

The points raised are stuff to ponder upon, they are :
  1. The stock market and economy is currently like a person pulling a leashed dog
  2. Less jobs in the future (less in manufacturing)
  3. Only competitive and profitable companies will survive
  4. Larger wealth gap between the rich and poor
  5. Young people will be poorer (in wealth) than their parents
  6. China will still have positive growth ~1%
  7. UBI (universal basic income) is likely necessary but might not necessary make people lazy
  8. Stock market is rising because people are taking out cash and putting into stock market
  9. A pullback in the stock market is expected if it runs ahead of the economy
What I'm interpreting from the interview is :
  1. People need to be re skilled and up skilled to be competitive in the tough job market
  2. A change in lifestyle to a more minimalist kind is required
  3. Save and have an emergency fund for at least 1 year due to uncertainties in the job market and economy
  4. Be wary of the raging stock market as a pullback is almost a certainty
  5. Be grateful
In summary, the interviewee economist is saying that we will experience slowdown in the economy, things will only worsen before it gets better. From the feel of it, he is likely referral to a U-shape kind of recovery.


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