A V(accine)-Shaped Recovery
As we put the election behind us, we look to 2021 and the future with a new administration. Included with that are fresh ideas and bold new approaches to governing. On top of President-elect Biden’s agenda is implementing a Covid-19 Task Force that includes a who’s-who of former government health officials, academics, and major figures in medicine. This move mirrors President-elect Obama’s implementation of his economic team that included the likes of Timothy Geithner, Larry Summers, and Henry Paulson. That team and others helped stabilize the U.S. economy during the 2007-08 financial crisis.
The stock market surged Monday on promising news that Pfizer’s Covid-19 vaccine candidate proved 90% effective in late-stage trials. This signaled some potential relief for the pandemic stricken U.S. Economy. Despite the news of a promising vaccine, according to some economists, the U.S. is still on track for a slow recovery. Experts forecast that recovery of the nearly 24 million jobs lost to the pandemic may extend into 2024.
A full economic recovery is really dependent upon two basics that aren’t easy accomplishments; short term, reducing the spread of the virus and long term, a robust vaccine. The short term consists of a science-based approach to getting the raging pandemic under control while the later consists of lengthy clinical-based trail and a ramp-up in production. Of note, Dr. Fauci announced today that a vaccine could potentially be made available from Pfizer by December 2020 to those that are at most risk.
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Craig Cooper
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. The information is based on data gathered from what we believe are reliable sources. It is not guaranteed by LPL Financial, LLC as to the accuracy and is not intended to be used as the basis for any investment decisions. Opinions and forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Actual results could differ materially from those anticipated. Please consult your financial advisor before making financial decisions.