These are the stocks to short when a COVID vaccine is ready, says JPMorgan

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Strategists at JPMorgan have put together a list of companies that are at risk of steep drops when a coronavirus vaccine arrives.

Executives at drugmakers Pfizer PFE, +1.00% and Moderna MRNA, -1.55% say their COVID-19 vaccine candidates could be ready, at least for limited use, by the end of the year. It will be good — make that, great — news for the economy if the vaccines are effective enough that face-to-face interactions can once again resume without much fear of spreading, or contracting, the new coronavirus.

Strategists at JPMorgan have put together a list of companies that are at risk of steep drops. They are at the “upper echelon of momentum and have crowded positioning, that could see the second derivative of their profit growth decrease as consumer / corporate activity normalizes,” said the JPMorgan team. Some of the names, like Zoom Video Communications ZM, -2.11%, are obvious, but the list also includes companies including education technology provider Chegg CHGG, -1.

“Given the large divergence between these two baskets , coupled with our expectation that COVID-19 headline risk likely declines postelection, we see an increasingly compelling case for value in the coming period. Deep value, namely energy and financials, would likely be key beneficiaries of an ‘orderly’ Trump victory and could see a large short squeeze.

 

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Not sure which ones to short if we get a working vaccine. In the mean time funeral/cremation, burial related stocks are a good place to be for the next 12-16 weeks... longer if the lame duck is as vengeful as I think he is. Winter is coming.

Anybody still listening to jpmorgan ?

Most Life Insurance Co.

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Source: BusinessInsider - 🏆 729. / 51 Read more »