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.
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
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Past performance does not guarantee future results. Individuals cannot invest directly in an index.
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Any sectors mentioned are for illustrative purposes only and should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, timeframe, and risk tolerance. Individual sectors are subject to the additional risks that are associated with a particular industry, such as political, regulatory, market, or economic developments.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
Coronavirus Vaccines and the Economy
December 10, 2020