Stockmarkets remain unimpressed by news of the latest vaccine
Stockmarkets went mad on news of Pfizer’s Covid-19 vaccine, but a similar update from AstraZeneca brought little more than a shrug.

“Bored already”, says Alistair Osborne in The Times. Equity markets were overjoyed when positive news of Pfizer’s Covid-19 vaccine trials broke earlier this month. But a similar update from AstraZeneca this week brought little more than a shrug. Global stockmarkets didn’t leap, but they have continued to trade close to recent highs. The MSCI World Index is up by 10% since the start of the month, with America’s S&P 500 up by 9%. The FTSE 100 has been a standout performer, gaining 15% in November, although British blue chips are still down by 15% for the year to date. Bulls have gone rampaging through bitcoin and oil markets.
Caught between Covid-19 and a cure
Never mind the market reaction, says Craig Erlam of OANDA Europe. The AstraZeneca vaccine is easier to store than its peers and is much cheaper. Investors must remember that vaccine makers are not in competition with each other. Constrained supply means that “the more successes we have the faster the global economy can get back on its feet… the light at the end of the tunnel is shining a little brighter.”
“It is the best of times and the worst of times, as Charles Dickens wrote”, says Randall Forsyth in Barron’s. “Optimism reigns” in markets as traders look forward to a strong rebound next year. A Bank of America survey reports that money managers have upped their stock allocations to the highest levels since January 2018. Yet back in the present a sagging recovery and new Covid-19 restrictions mean the current picture remains miserable. A vaccine next year is not very helpful if you get infected today, as John Authers points out on Bloomberg. The autumn virus wave is now very much in evidence in the US. New York City closed schools last week; the move hit “close to home” for many traders and triggered a pullback on Wall Street. Daily deaths are already at a six-month high and new infections continue to surge. “One last horrible dose of the virus” awaits us before this “dark winter” is over.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The bulls prepare
US equity markets do look “a bit exhausted” after this year’s exertions, says Michael Wilson of Morgan Stanley. There is a decent chance of “one more drawdown” before the end of the 2020. Nevertheless, the outlook for 2021 is unambiguously bullish. The vaccines will bring a new multi-year economic cycle, which almost always powers stocks higher. “We forecast 10% upside over the next 12 months” for the S&P 500.
Not so fast, says Michael Mackenzie in the Financial Times. Investors who got in early during past economic cycles were buying in markets offering heavily discounted valuations. Yet US valuations are already historically high, effectively meaning that much of the future recovery is already priced in. That also goes for cyclical stocks: it usually takes four or five years for US small-cap and industrial share prices to make new highs after recessions, says Nicholas Colas of DataTrek. Yet both sub-indexes are already trading above their previous all-time highs in America and the economic recovery hasn’t even started yet.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
Bargain bling: invest in luxury stocks while they are out of style?
Although sellers of luxury goods are more insulated than many industries, economic headwinds have been holding them back too. Is now a good time to pick up a bargain?
-
Inheritance tax pension rule could make six times more over 55s liable – how investing in onshore bonds can help
Financial advisers have switched to recommending onshore bonds to help clients avoid inheritance tax and pass on wealth
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Who’s driving Tesla?
As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
Investment opportunities in the world of Coca-Cola
There is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
-
Streaming services are the new magic money tree for investors – but for how long?
Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
-
'Pension funds shouldn't be pushed into private equity sector'
Opinion The private-equity party is over, so don't push pension funds into the sector, says Merryn Somerset Webb.
-
Greg Abel: Warren Buffett’s heir takes the throne
Greg Abel is considered a safe pair of hands as he takes centre stage at Berkshire Hathaway. But he arrives after one of the hardest acts to follow in investment history, Warren Buffett. Can he thrive?