Message from Jon
Well, this weekend was quite the busy one for information and the election. We finally saw what we felt would happen, which was a Biden win. I know it's not over yet, but the election cycle is now behind many of us and we can now move on for the love of everything sacred!
We were also notified of a big break in the vaccine front where Pfizer's collaboration with BioNTech has claimed to produce a vaccine candidate that is 90% effective over a large clinical trial.1
While Pfizer's break has the news cycle's attention, Moderna's vaccine efforts are also likely to grab attention since they are similar approaches.
We are planning on seeing several changes to various parts of the markets unfold in the coming days and weeks as the news of the vaccine trials bubbles to the surface, not to mention the speculation of Biden's win and what that may or may not mean for the economy, the markets, the stimulus, as well as monetary policy.
We are seeing the VIX decline by about 10% Monday. Oil, Dow and S&P all advance significantly compared to the NASDAQ. Europe and Emerging Markets are faring well too, while Gold has declined. In our opinion, The NASDAQ is getting hit because we are seeing a sorting out of the tech names that have succeeded due to COVID and the stay at home vs those who have a fairly good valuation and plenty of runway in front of them, but we will certainly see more shaking out in the days and weeks to come.
Till we speak again, enjoy the ride!
Markets React to Election
WEEKLY UPDATE - NOVEMBER 9, 2020
The Week on Wall StreetStocks soared last week as investors anticipated that a split Congress would raise legislative hurdles to changing corporate taxes and adjusting regulatory oversight of big technology companies. The Dow Jones Industrial Average jumped 6.87%, while the Standard & Poor's 500 tacked on 7.32%. The Nasdaq Composite index surged 9.01% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 7.65%.