What if a COVID-19 Vaccine Is Delayed? - Adviser Investments

What if a COVID-19 Vaccine Is Delayed?

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.

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Liz Laprade:
We’ve definitely seen the market move with vaccine news, specifically in the health care sector [Pfizer’s vaccine news sent stocks 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.

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Click here for a replay of Looking Beyond the Election to the Recovery’s Future. Please contact us at (800) 492-6868 to learn more about comprehensive wealth management solutions.

*Webinar recorded after the market closed on Wednesday, October 28, 2020.

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