With political intrigue stateside out of the way, markets are now taking heart at the impending arrival of a viable Covid-19 vaccine. Pfizer-BioNTech’s announcement that its vaccine showed greater than 90% efficacy with minimal side effects on 9 November has been a “major catalyst” for markets. Lee says that investors have switched their outlook from cautious pessimism to the realisation that widespread vaccine availability could come about within the next twelve months.
While Donald Trump’s refusal to concede this year’s US Presidential Election has generated significant political controversy, market watchers remain unperturbed about the prospect of political unrest. According to BOS Head of Investment Strategy Eli Lee, it is time for investors to reposition their portfolios for market re-opening in anticipation of a viable Covid-19 vaccine.
“The uncertainties related to the US elections are now mostly out of the way. As we have highlighted in our previous US election reports, President Trump’s odds of credibly contesting the results are low, and the outcome of Biden’s win with a likely split Congress presents many positives for markets,” Lee writes in a 16 November broker’s report.
