The market has exploded…
The vaccine hope has been revived.
Since the pandemic started, the name of the game has been a vaccine. And we’ve seen a wave of companies throw their hat in the ring, trying to be the first one to bring one to market. But it’s been a long road, and many companies have continued to fall short of producing the product.
But there’s one name that’s continued to persist despite hitting a few snags along the way. And now, they have announced that they’ve had a breakthrough – and it’s a big one.
Where’s the money?
On Monday, Pfizer announced that its Covid-19 vaccine is 90% effective among those without evidence of prior infection, hailing the development as “a great day for science and humanity.”. This injected optimism into the economy and the market. And while Pfizer’s vaccine still has multiple hurdles to clear before it receives regulatory approval, hopes are rising for industries that have suffered at the hand of Coronavirus.
It’s not just specific industries bouncing back, though- the market as a whole is feeling the positive momentum from this announcement. Investors appeared to be almost desperate to get into the market, driving the Dow Jones Industrial Average up more than 1,550 points, or about 5.4%, and bolstering the S&P 500 Index by 3.8%.
But before you go chasing this market up with the rest of investors, here’s what I think you should know…
How do I get some?
This is the news we’ve all been waiting for. A vaccine and what could be the answer we’ve all been waiting for. So, it’s really no surprise to see the market react as it did. Especially seeing the analysts have been saying that the only way to kickstart a real economic recovery is to have a vaccine in place.
But here’s the catch, when you look at the market right now, price action and momentum are weak, which is a red flag to me when it comes to investing. And unlike the rest of the market, I would press pause on buying up any stocks that require foot traffic to be successful. For instance, I’m talking about airline stocks like UAL and AAL or any big retail name. These stocks are on fire, and they continue to move higher off the news, making them a more expensive buy.
Now, with that said, I’m not saying that these stocks are entirely off the table. But to ensure I get the biggest gains I can, I will be waiting for a pullback on these names. And I’ll be sure to keep you updated.
In the spotlight: The pet supply world is thriving…
Well, there’s one industry that has, for sure, benefited from the stay-at-home orders. The pet industry has seen a massive uptick in business as consumers ran to shelters and breeders to add a new family member to their home.
So, it would only make sense that we expect to see pet merchandise flying off the shelf in the upcoming holiday season. In fact, pet merchandise is expected to be one of the top gift categories according to a recent survey by consulting firm Deloitte. About half of the 4,000 people surveyed by the firm said they plan to purchase pet foods and supplies during the holiday season. On average, they plan to spend $90 on pet items, which will be gifts for their dog or a family member or friend’s pet.
Walmart is preparing to sell 3 million pet beds. Chewy plans to offer gift cards and personalized mugs, blankets, and bandanas for the first time. And PetSmart is excited to provide a mix of seasonal supply – from holiday-themed treats and even a Santa costume for a bearded dragon. And they expect this stock to sell well.
Now, even before the pandemic, the pet care world was thriving. And now, the $131 billion industry is expected to grow 7% annually over the next five years. This industry outlook is a strong one, so I plan to keep a close eye on the pet care world. And I’ll be sure to keep you updated.
The News We’ve All Been Waiting For
The announcement of a very big step towards a viable vaccine is certainly welcome news, bringing a wave of optimism along with it.
But until further notice, it will be best to take a measured approach and not go chasing profits, as I fear so many people will.
My colleague – biotech investing expert Michael Robinson – reached out to me and wanted me to share with you his best strategy for playing the vaccine race to your advantage.
Click right here for more information.