We have had some good news over the last several days. The stock market responded to news about a potential coronavirus vaccine. The Dow average rose over 600 pints and the S&P rose over 500 points after Memorial Day on news of the potential vaccine. Several pharmaceutical companies are racing to find a vaccine. The Maryland-based biotech company Novavax said it started the first human study of its experimental coronavirus vaccine. Pharmaceutical company Merck announced that it’s working in collaboration with scientific research organization IAVI to develop a vaccine. Earlier, the biotech company Moderna reported positive results from a vaccine trial. This is positive news.
With this news, America is beginning to reopen at the same time. It’s still going to take a long time before the damage is repaired but it’s a start. Lockdowns are beginning to loosen and more businesses are reopening. Granted some states are loosening their restrictions faster than others, with some cities holding off on opening as quickly as their own state (e.g., Salt Lake City and Utah). We saw the New York Stock Exchange (NYSE) partially reopened for trading after being closed for more than two months due to workers testing positive for coronavirus. Right now, about 25% of brokers are allowed back on the floor. But it’s a start and we are heading in the right direction.
The EU also announced a $2 Trillion response effort to the virus. Hopefully the response and money being spent ends up in the right places and helps society get back to our normal routines. Being able to gather in groups is something most of us can benefit from. Whether it’s going to a restaurant, museum, play, sporting event, or church or something else, these are all events that boost our economy and bring us joy (or frustration depending on which team you follow). This effort has done something to unify us, whether we like it or not. The next 6 months will bring some unknowns, especially given the seasonality of the virus. But with caution and a group effort, we can start to enjoy company again. As retirement planners, we are acutely aware of the impact this can have on portfolios and are happy to say that our clients have been able to continue enjoying their retirements through this period of market uncertainty. If you have questions about your retirement, don’t hesitate to give us a call.
