Is the vaccine a positive for 2021? I think the answer is yes. Last night I was on a call with a doctor specializing in the field of immunization. Based on the data, we are likely to see effective immunization soon. There are numerous vaccine options and alternatives being both delivered and coming on line. The data suggests we should be rolling beginning now through the summer. If the various vaccines prove helpful, we could see a significant turnaround.
As the United States sees a rise in cases of COVID-19 across the nation, news of two promising vaccines out of hundreds being tested has offered a ray of hope for a fatigued world.1
A positive reaction to these vaccines affects every aspect of human life, including the financial world. On Monday, November 16th, The Dow Jones Industrial Average rose 450 points on the news of a second effective vaccine, hitting a record high.2
Markets are not merely reacting to the positive news, but what a vaccine might mean for the economy. Investors are likely picturing people returning to something resembling their old lives. Stocks related to travel, such as airlines and cruise holidays, have seen an uptick. The properties of the vaccine itself might influence the markets - one of the vaccines spotlighted requires deep refrigeration, leading to a boost in trading for companies offering that service.3
While the hope the vaccine inspires feels reassuring, it’s crucial to maintain the long view, just as the markets are. Investors may now see life after COVID-19 on the horizon, but we aren’t there yet. Vaccines must be approved for use, distributed, and widely adopted before the full benefit can be realized. That will take time.4
In the meantime, we welcome your questions on the economic impact of one or more successful vaccines and how it might affect your overall financial strategy. If you need a second opinion with your strategy, talk to us. Just go to www.talktolouisllanes.com
1. The Associated Press, November 16, 2020
2. CNBC.com, November 16, 2020
3. Barrons.com, November 10, 2020
4. Seattle Times, November 16, 2020
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A Ray of Light: Coronavirus Vaccines and the Economy
December 17, 2020