Margaret Keenan became “Patient X” this week. She was the first recipient of a Covid-19 vaccine shot approved in and administered by a Western nation, states Mike Larson of Safe Money Report.
The 90-year-old Coventry resident got her first dose courtesy of the UK’s National Health Service on Tuesday.
And—as if 2020 wasn’t dramatic enough already—81-year-old William Shakespeare was among the first of tens of thousands who will follow in that country soon.
If, as expected, the US Food and Drug Administration approves the vaccine produced by Pfizer Inc. (PFE) and BioNTech SE (BNTX) in the next few days, millions more will follow here.
Another vaccine from Moderna Inc. (MRNA) is hot on this one’s heels, while still more are likely to gain approval in 2021.
Naturally, Wall Street reacted by...mostly yawning? How can that be?
Here’s my take on the curious market response this week, along with my sense of what we’re likely to see next.
Part of the market’s nonchalance stems from the old reliable Wall Street habit of “selling the news.”
Investors are notorious for jumping the gun and buying in advance of potentially major positive developments. When their anticipatory buying pays off, they move to grab profits. That puts some downward pressure on stocks.
The bigger issue—from a market perspective rather than a public-health one—is what the beginning of the vaccination process means for potential future stimulus.
Investors have been trying to handicap the chances of a Democratic takeover in the Senate. That will happen if Democratic candidates win both of the two Jan. 5, 2021, runoff elections in Georgia.
Consensus thinking is that this will free the Biden administration to unleash a massive fiscal program early in the new year. And that’s likely to be accompanied by even more cheap, easy money from the Federal Reserve.
In other words, Wall Street would have a double-barreled shot of cheap cash to feast on.
That said...if the vaccination process goes smoothly and quickly...and if that gets “Main Street” and the economy get back on track sooner...it could mean less money, not more, flowing from Congress.
And it could lead to more resistance at the Fed about flooding Wall Street with abundant liquidity.
In other words, there are a lot of ways things could play out. There are a lot of scenarios investors are wrestling with. So, it’s only natural that positive news on the pandemic front is greeted with a mixture of ambivalence and caution.
My advice? Don’t lose sight of the big picture. Don’t get too caught up wondering about every wiggle on Wall Street. Recognize that the vaccination process—and the debates over stimulus—will take a long time to play out.
That means your best move is to tighten your focus on time-tested investments and strategies that will work no matter how things unfold.
Think higher-yielding, higher-rated “Safe Money” stocks and exchange-traded funds that are crushing alternatives.
Think gold, silver, and mining shares that have racked up phenomenal gains since 2018.
Think highly rated, promising cryptocurrencies that are beating the pants off equity indexes.
Or, basically, the things that were working best before we learned of this shot across the pond. They haven’t let you down, and I don’t think they will in the weeks and months ahead.
Safe Money Report focuses on these kinds of stocks, which include names in the consumer staples, food and beverage, retail, and healthcare sectors. Visit Safe Money Report here…
