TickerHound

MNSL answered one month ago …

Long term unemployment will develop into following scenarios:

Will reduce national income and purchasing power
It will create less demand for some products such as luxury items, overvalued commodities and assets
Foreclosures for properties will increase
People will travel less
Savings and investment will come down
Prices of assets and commodities will come down
Finally economy will slow down
Property, Financial, Air lines, Car and commodity sector will hit hard. Outstanding companies will survive in these sectors.

Only selected markets, sectors and stocks will have better time. These sectors will outperform market irrespective of market volatility and market situation.

I think most of the above developments will occur during next 12 months. Intelligent investors will have life time investment opportunities in next 18 months.

In short increasing long term unemployment is bad for the economy.