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The Covid Nightmare Continues; Biden to Address the Nation

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The Covid Nightmare Continues; Biden to Address the Nation

Author: Greg Valliere

September 9, 2021

WITH COVID CASES STILL RISING IN SOME STATES, especially among children, Joe Biden knows that his political fortunes depend on addressing widespread confusion and partisanship over the virus. He has scheduled what his advisers are calling a “major address” at 5 p.m. ET today.

BIDEN WILL URGE MORE VACCINATIONS AND MASK-WEARING, but that still encounters strong resistance in the Southeast U.S. New cases may be leveling off at about 150,000 daily nationwide, but health experts are holding their breath after hundreds of thousands of unmasked young people attended football games last weekend.

ONLY ABOUT 54% OF THE POPULATION in Florida is fully vaccinated, with just 48% fully vaccinated in Texas. Hospitals are at full capacity in the South; nationwide, fatalities are exceeding 1,500 per day. Children now account for about one-quarter of new cases.

THE SIMPLE TRUTH, finally accepted in the financial markets, is that we’re not out of the woods yet on Covid. Medical experts concede that the virus may never be eliminated, just simply simply contained — but even that stark conclusion relies on more vaccinations, which should reduce hospitalizations and fatalities.

EVEN IF THE NUMBERS IMPROVE this fall, there’s persistent uncertainty about school attendance and a renewed reluctance by some Americans to return to work. Economic growth in the second half is shaping up as a disappointment — just as the Federal Reserve considers tapering and fiscal policy encounters turbulence in Congress.

SOME OF THE ECONOMIC WEAKNESS COMES from clogged ports and a shortage of semiconductor chips, which may persist well into 2022. Whatever the reasons, the economy no longer is a political plus for Biden, as the public sees inflation everywhere — a product of runaway federal spending, many voters contend.

BIDEN’S JOB APPROVAL RATINGS have plunged by 10 percentage points since early summer; his declaration of victory over Covid on July 4 was a huge miscalculation, as was the inept evacuation of Afghanistan.

RECENT POLLS SHOW A STUNNING DROP in Biden’s ratings for leadership on Covid, which was a strong suit for him in the spring. Thus today’s address will be crucial; most Americans are confused over booster shots and whether vaccines will become available for those under 12 years old.

MOST IMPORTANTLY, Biden needs to restore confidence, which has slipped badly in the last two months. We have a colleague who preaches that confidence is the ultimate economic stimulus. Conversely, a lack of confidence is a serious headwind.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

©2023 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

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