Coronavirus Vaccines and the Economy

As the United States sees a rise in cases of COVID-19 across the nation, news of two promising coronavirus vaccines out of hundreds being tested has offered a ray of hope for a fatigued world.¹

Hopeful Markets React to Coronavirus Vaccine

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

How a Vaccine Might Influence the Markets

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

Thinking Long Term

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. Coronavirus vaccines must be approved for use, distributed, and widely adopted before the full benefit can be realized. That will take time.⁴

Clearwater Wealth Management may be reached at (616) 676-9215 or contact@cw-wealth.com

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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.
1. The Associated Press, November 16, 2020
2. CNBC.com, November 16, 2020
3. Barrons.com, November 10, 2020