How have we factored in the possibility of a delayed or ineffective vaccine as we manage client portfolios? Research Analyst Liz Laprade discussed our latest thinking about making investments amid promising vaccine developments in our recent webinar,* Looking Beyond the Election to the Recovery’s Future.
Please enjoy the excerpt below and click here for the full webinar replay to hear more.
* * * * *
We’ve definitely seen the market move with vaccine news, specifically in the health care sector [Pfizer’s vaccine news sent stocksA financial instrument giving the holder a proportion of the ownership and earnings of a company. higher on Monday, November 9]. I think that life will go back to some sense of normalcy, and the vaccine is really just affecting the timeline that we’re on until we get one. If there are shortcomings, then that’s going to continue to help the work-from-home tech trends, stocks or sectors. But if we do get a safe, effective vaccine that we can properly distribute, then you might see some of the depressed sectors like industrials, airlines and energy start to come back. So again, a diversified portfolio is what you want to have there and is key for that.
As far as the way we’re thinking about it goes, we’re not taking any big vaccine bets in our portfolios. We’re not positioned to react strongly if we do or don’t get a vaccine. We’re really just going to let our managers do the research behind the big vaccine-race players like the AstraZenecas and the Pfizers of the world.
One manager we invest with was recently talking about the way he is thinking about the vaccine, and posed that a better way to think about investing where it’s a big binary outcome is to look at the supply chain, the companies that’ll be a part of that distribution and see who might be benefiting to see if they’re a good investment opportunity.
For us, what it really comes down to is diversified portfolio, and not making big investment bets on something that’s so binary.
*Webinar recorded after the market closed on Wednesday, October 28, 2020.
Disclaimer: This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Our statements and opinions are subject to change at any time, without notice and should be considered only as part of a diversified portfolio. Mutual funds and exchange-traded funds mentioned herein are not necessarily held in client portfolios. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.
You may request a free copy of the firm’s Form ADV Part 2A, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.
Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional, or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.