Shares rebounded to begin the week after Pfizer and BioNTech’s Covid-19 vaccine candidates received “fast track” status.
This is what strategists and portfolio managers say for the coming semester and how investors should prepare.
Nela Richardson, director and investment strategist at Edward Jones, sees stocks continue to rise in hopes of an eventual recovery.
“The consensus shows that the pain, the toll, the pain will be felt to a great extent in the second quarter, and then they will improve in the third and fourth quarter and will see some signs of a rebound in 2021, so while we don’t know the directionally, what we should see is some consistency: that as the economy reopens, even if it is bumpy, even if risks increase with these new outbreaks, there is a feeling that the economy is recovering in the second half the year, and that earnings will live up to that recovery and share prices will continue to rise. “
Nili Gilbert, co-founder and portfolio manager at Matarin Capital, is rethinking the ways her investment team approaches investment.
“If you take a look at the forward TIPS curve, the current price is that the Fed will not be able to meet its 2% target for the next 10 years, and that inflation expectations at this point are lower than they were coming out. of the big financial crisis. If we are able to get vaccinated later this year, early next year, and things start to change, that may seem like an overly aggressive assumption, so one thing is for investors to be able to start thinking , and we’re talking about that our investment team is also dusting off that old rule book and really thinking: what does asset allocation look like, what does stock selection look like in a different environment? “
Bob Doll, chief equity strategist at Nuveen, said investors are focused on 2021 and forgive the weakness this year.
“I think the market doesn’t care about second quarter earnings, we knew they would come. The question will be how much the third quarter will rise compared to the second quarter and, in your opinion, what will 2021 be like? I don’t think we can go any further. 3,000 in the S&P unless people focus next year. “
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