Investors bet vaccine sparks revival in beaten down stocks

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Investors expecting an imminent COVID-19 vaccine are beginning to buy bank stocks and industrials in anticipation of a roaring return in consumer confidence, though many remain wary of risks in sectors ravaged by the pandemic.

Shinji Naito at Japan's SPARX Asset Management, which has $12 billion under management, hopes a vaccine could trigger a payoff from shorts in stocks pumped up by the pandemic, such as some technology firms, while helping long investments such as realtor Tokyo TatemonoDave Wang, a portfolio manager at Nuvest Capital in Singapore, said long-short pairs could wring gains from what is likely to be an uneven recovery.

For example, airports, which charge per aircraft regardless of their loads, could perform better than airlines hit by low patronage and rising fuel costs. Of course, not everyone is scrambling for a piece of the action amid questions about the timing, efficacy and distribution of any vaccine still remaining.

“You’re better off being a bit too late than too early,” said Hugh Dive, chief investment officer at Atlas Funds Management in Sydney, noting delays would leave under-pressure companies needing to raise more money quickly.“I think there’s two different trades,” said Sean Taylor, chief investment officer in Asia for German fund manager DWS. “A vaccine trade and a cyclical trade. I’m more positioning in cyclicals,” he said. “If we got much more credible data for vaccines, then I’d add services.

Reporting by Tom Westbrook in Singapore and Elizabeth Howcroft in London. Editing by Vidya Ranganathan and Sam Holmes

 

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Vaccines and medicine should not be tied to the stock market. This is so disturbing.

MohammedM5121 idk how people need a cure for coronavius if there are people that recovered from it in hospitals

The vaccine will hopefully be a real life saver when it is made available, but is any one going to be prepared for what is coming after the virus?

Vaccines aren't supposed to be a financial instrument - we were told that they had a health benefit. Who cares if investors like them? What if concentration camps and shit were considered profitable by governments and investors? The sex industry? Endless wars? Etc?

Zedrick Khan (ZedrickKhan12) Tweeted: SenateRepCaucus GOP JoeBiden DonaldJTrumpJr IvankaTrump SecPompeo PressSec realDonaldTrump VP CNN

A vax against nothing, what is wrong with stupid western media

Making a vaccine is one thing, convincing people to actually take it will be another, especially one developed so quickly. People already refuse to take ones that have been tried and tested for decades.

Stock are going to dump regardless

nice

I’m no expert, not gonna act like one. But I think Covid is here so stay, not enough people willing to wear a simple mask what makes you think they are going to willingly take a vaccine?

Pics like this aren't helpful bc it makes people think that there is a vaccine already.

What happens if COVID-19 evolve? Are still this vaccine can help humanity? Maybe wearing a mask is the ultimate solution.

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