We all are aware of the corona outbreak in the world, but even in this time markets are doing their best. They are giving liquidity and estimating future valuations. But all of it began with the growing coronavirus cases by the end of January. After three weeks it has affected more than 65000 people. But the initiative of social distancing was properly implemented and the number of cases started decreasing. But the quarantine affects the companies like NASDAQ: GRIL at https://www.webull.com/quote/nasdaq-gril (Muscle Maker Inc.) because if it would have been a normal recession than there would be a normal slowdown instead of a hard stop.
Think about it, now the businesses have no revenue so that it can offset the costs. Ultimately, they have to lay off people to maintain their businesses. Now that the people are jobless they will stop their spending and the loop of recession begins i.e. there will be less spending which leads to lesser profits for the sellers to earn and all of it creates more jobless people across the globe.
Crisis across the world
We can compare this situation with the 2007-2008 global financial crisis when the companies and probably the whole industrial sector needed help to survive. At that time, many financial banking institutions had taken bad management decisions which created a worse situation even for the government to provide them the support they needed.
Same mistakes won’t be repeated again
Since we have already passed that phase the government is trying to shut down businesses so that the history won’t repeat itself. By doing this, the government can replace the demand that has been lost with the public money; the companies can be whole again and for a while, staff can stay under-employed and once the unlock down phase begins businesses would be ready again for instance, in China after the two months of full lockdown people started going to work again, the recovery is slower than expected but at least it’s a start and once the outbreak stabilizes in other places, they can also do the same.
Hope is there
However, people also thought that if the other Nations could contain the virus-like China did then the companies would not go down and everything will be just fine; and If they ended up in failure, then people will not only lose their life due to virus but it would be worse than the Spanish flu.
Thus, we can conclude that during this phase some people might lose their job from the companies like NASDAQ: GRIL (Muscle Maker Inc.) and some people will be underpaid but there is a hope that once the situation stabilizes and it is going to take a while but we will be ready to face it. You can do margin trading for this stock. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.