We have had a very eventful two weeks and there has been a lot of information to take in.
This weekend the market has had two of its biggest uncertainties become a lot clearer. The market does not like uncertainty so this is a welcomed development.
First the US election and although unfinished we have a pretty clear picture of what will happen. We are going to see a Joe Biden victory and the Senate will be decided in January. The odds of a contested election are low due to the margin of victory for Joe Biden. This removes one major uncertainty that the markets feared.
There is also major news on the vaccine trials and one of the leading candidates is reported to be more effective than expected. This is very positive news as it provides much needed clarity regarding this ongoing pandemic. We are going to see more results reported from the other two front runners in the coming weeks. As we learn more about treatments and vaccines, we will see further confidence in the path out of the pandemic.
Both of these events combined have provided a good uplift to the market. It is our expectation that these events will be especially important to investments that benefit from a gradual return to normal such as the banks which have lagged due to the uncertainty about the economy. The recovery still has a long way to go, but we are pleased with the trajectory we are on and will continue looking to deploy cash to take advantage of discounted opportunities.
This communication has been prepared by Alan Tchabushnig and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. It is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member - Canadian Investor Protection Fund.