This Monday we received one of the most important news of the year, and perhaps of the decade: the study of the effectiveness of the Pfizer vaccine is very favorable.
This unleashed unbridled optimism in the stock markets, especially in the sectors most affected by the pandemic's restrictions and that had fallen the most in the stock market throughout this year.
We saw a very clear rotation towards those harmed sectors coming from technological and health care stocks.
In fact, the session on Monday, November 9, was characterized by a large difference between sectors
and between winning and losing stocks:
Although the news may be bad for certain specific businesses, such as Peloton (exercise bikes and treads for home) or Zoom Video Communications, the rotation dragged other technology companies where we do not necessarily see that the vaccine is bad news to them.
In fact, in recent days, many technological values are already beginning to regain the levels they had before.
Can the decline in tech values be an entry point to invest in technology?
As always, the answer lies in the company's business model. Semiconductor companies or payment processors may not necessarily find the vaccine news bad, since they can also benefit from the better macroeconomic cycle.
It seems that, in the first two weeks of November, uncertainties are being eliminated along the way: we already have a winner in the White House and Covid-19 is becoming a "minor" concern over time.
As a Christmas gift, it would be nice if the uncertainty of Brexit also cleared, but perhaps that is asking too much for a 2020 full of obstacles.