With the coronavirus vaccine now being handed out to patients in the U.K. and other countries around with world, with the United States also having approved the Pfizer Inc. (NYSE:PFE) vaccine in recent days, questions remain for investors as to what to do as stock markets continue to rise amid the shot in the arm markets have received as a result of this virus news.
With time being the ultimate enemy for governments around the world scrambling to secure as many doses of the vaccine as possible, the ultimate winner in all of this is likely to be the pharmaceutical industry and the companies that produce the virus such as Pfizer. From a valuation basis, Pfizer has been cheap for some time and was a very investable security without factoring in the vaccine, in my view. Focusing on pharmaceutical investments geared toward global coronavirus vaccination efforts is indeed a winning strategy right now.
For stocks more broadly, I think investors can expect more optimism to come out of these announcements. Though we’ve seen stock markets rally to levels that have exceeded the highs we saw before the pandemic, I think stocks could continue higher for some time to come as sentiment and returns become more important to stock prices in the near-term.
Over the long-term, value and conservative investing will still win out, though one ought to have a certain portion of one’s portfolio dedicated to growth options to take advantage of the outsized returns these sectors have traditionally offered, in my view. Now is not the time to be overly aggressive, but making sure one does not miss out on rallies is very important to all investors.
Invest wisely, my friends.
