Stock markets are lately assessing the chances that any COVID-19 vaccine approved this year will be 50% to 60% effective, Bloomberg reported, according to Dmitry Balyasny of Balyasny Asset Management.
This would allow some unpopular stocks, or acquisition shares, to combine when a vaccine becomes more effective, he said.
Balyasny, whose company manages about $118 billion, said that once a vaccine is 80% to 90% effective, markets will begin to see weakness in the stocks that are badly affected.
“If there’s a solution where markets are convinced that, well, it’s okay, it’s a genuine solution to the problem, whether it takes 3 or six months, stocks will go ahead,” Balyasny said at a Citigroup virtual fair. Conference.
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The race for the coronavirus vaccine has recently been affected by setbacks.
American rival Eli Lilly also suspended testing of its COVID-19 antibody remedy after an independent panel of experts raised concerns about protection.
Balyasny said investors look forward to an effective vaccine being distributed and moving forward over the next year. By the end of 2021, “you’re starting to get back to normal,” Bloomberg said.
Although he made no mention of express movements and sectors, he warned that this sentiment would lead to the outdoor action of the generation sector.
“As soon as there’s a soft one at the end of the tunnel for this, you can get a rotation,” the asset manager said.
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