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PFIZER ANNOUNCES VACCINE: DOES IT CHANGE THE SCENARIO IN MARKETS?

November 9, 2020. Day that will be remembered by many traders who saw markets explode to the upside . The pharmaceutical company Pfizer announced that a vaccine with 90 percent efficacy has finally been tested. The markets took the news well, but not all of them.

The market that has risen the most since the beginning of the pandemic to date is the Tech market. This is because the various Lockdowns have caused digital services and technology products to grow exponentially. Utilities, the tourism sector, retail and industrial as a whole had lagged behind instead. Not to mention oil.

Pfizer announces vaccine
Spread between tech and industrial sectors

Pfizer announces vaccine, now scenario may change

There is a light at the end of the tunnel. By 2021 we could be out of the pandemic and back to our lives in a normal way. What might this entail? Obviously more consumption, more travel and thus an uptick in some sectors such as tourism, oil and industrial at the expense of the technology sector. There will be less smart-working and some stocks like zoom may be penalized (see today’s -15%). Some kind of realignment between sectors could return.

Is buying industrial and selling tech a good idea? Not if you don’t know how to do it. Not all tech will be penalized and not all industrial will be revalued. The covid heavily marked some giants by accelerating the process of decline to which they were already heading.

Remember that the vaccine process will not be a quick overnight process; it will take time. In the day today we saw how traders preferred to move to very Value stocks and far behind in prices. I mention Carnival and its +34% (a stock we reported in the premium club a few weeks ago).

The trader’s skill lies in following the trend and understanding how far it can go. The investor’s lies indiversifying his or her portfolio in such a way as to be covered by every possible scenario (or nearly so). These jobs are our bread and butter, and we try to pass on our skills to all our community members. We are going to see some great things!

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