Wall Street is becoming increasingly positive this morning on the idea that a vaccine might be available this year by Pfizer. Momentum in vaccine development would be an incremental catalyst on top of economic restarts. A vaccine could allow individuals to interact closely once more, granted this scenario is best case and would still take some time. But still, it’s a sign that progress is being made. Gilead Sciences is also reporting good news that their therapy drug is doing well helping patients with early signs of COVID-19.
If progress on a COVID-19 vaccine & therapy can be made sooner than later, this should provide continued support for the S&P 500 Index as well as global equity markets. A treatment that would allow individuals everywhere to resume their daily routines would go a long way in easing infection concerns. Then they can go about doing “regular” tasks such as flying, dining out, and going to sporting events. This would allow asset managers, analysts, and investors everywhere to raise their outlooks for earnings growth and valuation potential going forward.
As you know this has been a rollercoaster ride during the past two months. It is hard to feel euphoric but biotech and pharmaceutical companies are starting to make headlines daily which is helping the psychological effect of this pandemic outlook which is spilling over to the stock market. We are remaining cautiously optimistic and hopeful that we are turning the tide against the virus and possibly shortening the devastating effect on the worldwide economy. We are here to help in any way we can. Please don’t hesitate to reach out to us. Stay healthy and safe.