{"id":9092,"date":"2020-12-03T17:34:34","date_gmt":"2020-12-03T17:34:34","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9092"},"modified":"2022-02-26T13:06:00","modified_gmt":"2022-02-26T13:06:00","slug":"will-an-effective-vaccine-jump-start-the-economy","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/will-an-effective-vaccine-jump-start-the-economy\/","title":{"rendered":"Will an Effective Vaccine Jump-Start the Economy?"},"content":{"rendered":"\n

Shea M. from Dallas,\nTX asks: <\/em>Hello Mitch, I hope you had a nice Thanksgiving. One of the\nconversations around our dinner table was about the vaccine, and how an\neffective vaccine could jump-start the economy next year in a big way. Do you\nagree, and if so, are there areas of the market that could benefit?<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, Shea, and thank you for the holiday\nwishes. I hope you had an enjoyable and safe Thanksgiving as well. <\/p>\n\n\n\n

It\u2019s funny you mention vaccines as a dinner table\nconversation over the holiday \u2013 it was a topic at my family\u2019s house, and I\u2019m\nsure it was also discussed at many, many others across the country! I think\nmost people are hopeful \u2013 and ready \u2013 to turn the page on this pandemic. <\/p>\n\n\n\n

As for the economy, I do think there is a good case for\nseeing a surge in activity if the vaccine checks all of the key boxes:\neffective, safe, widely and easily available (at little or no cost), and\nbroadly distributed (people actually get the shot). I think we\u2019re getting to a\nplace where \u2018effective\u2019 and \u2018safe\u2019 are closer to assured. It\u2019s the last two\npoints that are still a bit uncertain. <\/p>\n\n\n\n

______________________________________________________________________<\/p>\n\n\n\n

Is Your Retirement Prepared for What\u2019s to Come?<\/a><\/strong><\/p>\n\n\n\n

Looking ahead, you\nmay be concerned with all the uncertainties surrounding the market, like when a\nvaccine will be accessible and how it could impact the market. That being said,\nit\u2019s important not to get caught up in the fears of the unknowns and miss the\nopportunities ahead.  You may not know\nwhat\u2019s to come, but you can build a retirement strategy now that takes the \u201cwhat\nifs\u201d into account. <\/p>\n\n\n\n

As you look to 2021, our free guide can help you prepare for what\u2019s to come! If you have $500,000 or more to invest, get our free guide, How Solid Is Your Retirement Strategy?<\/em> You\u2019ll get valuable and practical ideas to help build a \u201cweatherproof\u201d retirement strategy that can potentially protect your retirement from any storm that could threaten your financial security.<\/p>\n\n\n\n

Get our FREE guide: How Solid Is Your Retirement Strategy<\/a>?<\/strong>1<\/sup><\/p>\n\n\n\n

______________________________________________________________________<\/p>\n\n\n\n

The last point \u2013 whether or not people will get the vaccine\n\u2013 is very much up in the air. There is really no way to know how broadly the\nuptake of the vaccine will be at first, but my personal hope is that the\nnumbers are better than expected. As it is often the case in markets and the\neconomy, \u201cbetter-than-expected\u201d can lead to very positive outcomes. <\/p>\n\n\n\n

Making a million doses of the vaccine is one thing https:\/\/go.steadyinvestor.com\/download-retirement-strategy-guide?source=zim&medium=blog&term=mitchsmailbox_zim_2020_12_3&content=retirement_strategy_guide . But 300 million or a billion doses is quite another thing and will present some near-term challenges. There have been reports that vaccines may require refrigeration or specific temperatures for storage, and the logistical challenges of shipping the vaccine around the country are palpable. Fortunately, the United States has the resources, infrastructure, and manpower available to rise to the challenge. There will almost certainly be speedbumps initially, but I think the U.S. can overcome them with a little time.2<\/sup><\/p>\n\n\n\n

If we can check all of the vaccine boxes listed out above, I\nthink we could see a strong pop in economic activity in the second and third\nquarter. From the investment standpoint, however, I think the stock market has largely\npriced-in a positive outcome \u2013 the breadth and depth of recent rallies suggests\na firm economic recovery six or twelve months from now. This is not to say you\nmissed the upside \u2013 I still believe we are in the early stages of a new bull\nmarket, which could mean several years ahead of growth and stock market\nappreciation. I think now is a time to maintain broad equity diversification,\nand to look for opportunities abroad as well.  <\/p>\n\n\n\n

There is another side to this coin, however, that I think is\nworth mentioning. A delayed vaccine and\/or a disorganized roll-out could pose a\nnear-term risk to equity markets, in the form of short-term downside volatility.\nAlso, if the timeline for the vaccine changes, or if initial reports\noverestimated the efficacy and accessibility of the drug, the market is not\nlikely to respond positively. But these \u2018what-ifs\u2019 relate more to short-term\npossibilities, not the longer-term outlook. And the long-term is what you want\nto focus on. <\/p>\n\n\n\n

There is no way to predict these future outcomes. Instead, I\nrecommend planning a retirement strategy that takes these \u201cwhat ifs\u201d into\naccount. Our free guide can help you to prepare for what\u2019s to come as you look to 2021!<\/p>\n\n\n\n

If you have $500,000 or more to invest, get our free guide, How\nSolid Is Your Retirement Strategy.3<\/sup><\/em> You\u2019ll get valuable and\npractical ideas to help build a \u201cweatherproof\u201d retirement strategy that can\npotentially protect your retirement nest egg from any storm that could threaten\nyour financial security.<\/p>\n","protected":false},"excerpt":{"rendered":"

The markets have liked the recent positive vaccine news, but there\u2019s still uncertainty ahead<\/p>\n","protected":false},"author":3,"featured_media":7436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-9092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9092"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9092\/revisions"}],"predecessor-version":[{"id":10497,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9092\/revisions\/10497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}