A vaccine for Covid-19 is on the watchlist for not just investors, but arguably every single person on the planet. Yesterday, global pharmaceutical giant Pfizer along with bio-tech firm BioNTech released a statement claiming that their Covid19 vaccine candidate has delivered a 90% efficiency in preventing infection. The Phase 3 trial consisted of 43,538 volunteers that were split evenly into 2 groups where one group received the vaccine and the other were injected with a placebo. 94 volunteers are known to have developed Covid19 and the joint statement between the two firms says most of these are from the group that were given the placebo. The exact numbers from the groups were not disclosed and yes, this is just a preliminary statement where the data is not unverified.
However, this is fantastic news and it looks like we can finally see light at the end of the tunnel and boy did the global markets respond! Before we get into the markets, it is important to note here that the trials will continue and the results are still not enough to draw conclusions about it being The Vaccine. But, it does look promising, very promising and we sure hope that it is the beginning of the end for Covid-19.
Markets, yes, the fun stuff! Or not so fun – really depends on what stocks you were holding as of last night. A quick look at the markets show that most stock and sectors that were ravaged by markets in the Covid19 induced crash in March had made gains last night, and the opposite was true for stocks and sectors that benefited from the Covid19 crash. Market sentiment was high and investors were seen dumping technology, healthcare and gold mining stocks (among others) and jumped on the chance to buy stocks from sectors that would benefit when we recover from the pandemic – namely, retail, travel, etc. This has been the general consensus not just in the USA and Australia this morning, but global markets.
It is quite safe to say that the investor mood and momentum that sway stock prices have not passed us yet. Our members have the benefit of viewing our portfolios that have been carefully curated and hold stocks with strong fundamentals and we urge our members and anyone reading this blog to not jump on any bandwagons and make rash decisions if you are a medium to long term investor.
There is still plenty of news and developments that are expected to roll in from Pfizer and BioNTech and we hope we see a vaccine soon!