Opening Statement from the December 2020 Intelligent Investor (part 1)
Originally published on December 10, 2020 (pre-market release)
The month of November was marked by a tremendous boost in sentiment resulting in a very strong rally in global capital markets. After experiencing a selloff in late-October, many commodities mounted a solid rebound in November commencing with the U.S. “election rally.”
On Monday, November 2 the capital markets entered what would later progress into a very strong rally after having sold off in the final days of October in anticipation of the U.S. elections.
The trifecta of positive vaccine news from Pfizer/BioNTech, Moderna and AstraZeneca/Oxford delivered in three weekly installments led to tremendous gains in the capital markets for November, as investors see the latest coronavirus vaccine progress as the light at the end of the COVID-19 tunnel.
Just as the election rally began to run out of steam, on Monday November 9, Pfizer/BioNTech announced positive efficacy and safety data from phase 3 trials of its coronavirus vaccine. The following Monday on November 16, Modern announced similar results. Finally, on Monday November 23, AstraZeneca/Oxford released the results of its phase 3 coronavirus vaccine.
While efficacy of the AstraZeneca/Oxford vaccine is substantially lower than that of the Pfizer/BioNTech and Moderna vaccines, the price is significantly lower and does not have stringent storage requirements unlike the case with the Pfizer/BioNTech vaccines.
As you can imagine, since the first positive vaccine development was announced on November 9, crude oil pricing has surged. Crude oil price momentum remains strong as investors are now able to envision more clear signs of economic recovery in 2021. In contrast, gold and silver pricing have weakened and remain in an intermediate-term bear trend, as previously forecast.
The boost in sentiment fueled by progress in coronavirus vaccines has overshadowed the trend...
This article continues.
To continue viewing this entry please sign in to your Client or Member account.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
This publication (written, audio and video) represents the commentary and/or criticism from Mike Stathis or another individual affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, it is only an opinion and thus should not be taken to be factual. There is always a possibility that the author has made one or more unintentional errors, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigation so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.
For investment funds and financial institutions seeking to improve their performance
Tap Into the Mind of One of the World's Leading Analysts and Traders, Mike Stathis