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Today's big stories

We looked at what’ll happen to stocks when a coronavirus vaccine arrives
Investors are wondering if they should safeguard their portfolios ahead of the biggest US election in history – Read Now
The UK government announced fresh support for furloughed workers

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Investor, Heal Thyself

What’s Going On Here?

With the fabled coronavirus vaccine starting to look like a reality, we looked into whether it’ll actually make investors feel better.

What Does This Mean?

The pandemic – and this is the kind of astute analysis you come to Finimize for – isn’t over yet: that much is clear from reports of rising coronavirus cases in Europe and the UK, and from the Federal Reserve’s calls for the US government to support the economic recovery with more spending. But investors are still betting a vaccine will be approved by the end of this year or early next, and that parts of the global economy will be back at pre-COVID levels by the end of 2021.

A vaccine, economists estimate, would boost US economic growth by 3% and the eurozone’s by 2%. That’d be great for stocks overall, but it’d be particularly good for stocks in a few specific industries…

Why Should I Care?

For markets: Stop being so defensive.
So-called “growth” stocks – whose earnings are expected to rise rapidly – and “defensive” stocks – whose earnings are relatively stable no matter what – have held up pretty well during the pandemic. But once there’s an economy-boosting vaccine, investors are likely to switch to cheap-looking “value” stocks, as well as to “cyclicals”, whose fortunes tend to rise and fall with economic growth (tweet this). Then again, there’s no pressure to chase those short-term trends: stocks geared toward themes like digitization and renewable energy will likely beat everything else in the long run.

The bigger picture: Doctor, who?
Now there’s more confidence in the timing of a coronavirus vaccine, investors’ focus is increasingly turning to who will be behind it: nine candidates of the original 170 are in the final stages of testing, with frontrunners including Britain’s AstraZeneca and America’s Moderna and Pfizer. Of course, it’s anyone’s guess which treatment will cross the finish line first – let alone how much it’ll ultimately earn the company.

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2/3 Premium

How To Prepare For A Historic Election

What’s Going On Here?

With concerns growing that the outcome of the US election may not become immediately clear, investors are wondering whether they need to take any action.

Find out if you should adjust your portfolio in today’s Premium Insight

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3/3

My Hero!

What’s Going On Here?

The UK government came to the rescue of British workers and businesses on Thursday, announcing several new support measures that set hearts aflutter. Swoon...

What Does This Mean?

The UK’s furlough scheme pays up to 80% of the salaries of workers who haven’t been able to do their jobs since the pandemic shut down the country. But economists are nervous that unemployment will shoot up after the scheme expires at the end of October – especially given how far the UK economy is off a recovery. It has just imposed brand new restrictions, after all.

Cue the UK finance minister's theme song: he announced that the government will be bolstering the existing bonus scheme for companies who bring workers back with new wage subsidies. They’ll start in November, last for six months, and provide an employee who works a third of their normal hours with 77% of their full pay, split between their employer and the government. The UK also postponed planned tax rises for the hard-hit leisure and hospitality sectors, and extended the repayment period for the emergency loans it made available earlier this year.

Why Should I Care?

For markets: Well, if you insist.
To pay for these new measures, the UK government will have to borrow more money. And with Britain’s debt already at a record $2.6 trillion, you’d be forgiven for wondering if it’ll be able to repay that total. Luckily, there’s such high demand for government bonds that the yields on the UK’s – which move inversely to their prices – have plummeted, meaning it’s never been more affordable for the country to borrow cash.

The bigger picture: Pyrrhic victories.
The UK’s latest support package won’t necessarily keep employment as high as it’s touted to: employers could theoretically replace furloughed employees with part-time workers, saving on extra pay. And in industries still on their knees – like events – workers don’t even have reduced jobs to return to.

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💬 Quote of the day

“The impossible could not have happened, therefore the impossible must be possible in spite of appearances.”

– Agatha Christie (an English writer)

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😭 In case you missed it

Here’s some of our most popular Finimize Premium content this week…

Premium Insights:
🍏 Carl reckons Apple isn’t worth the money
🥃 Why this under-the-radar drinks market is booming
🏦 The time to invest in bank stocks might be approaching

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🤝 How to profit when companies bag themselves a bargain
😬 How to avoid getting hoodwinked, swindled, and ripped off

📚 What we're reading

Copenhagen’s gonna get there first… (Interesting Engineering)
QAnon heads to the wellness industry (Jezebel)
How musicians are beating the pandemic (Pitchfork)

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Finimize - 😮 Some stocks are anti-vaxxers

Today's big stories

Investor, Heal Thyself

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Prepare For A Historic Election

🔔 Ding ding ding: investing made easy

My Hero!

What’s Going On Here?

What Does This Mean?

Why Should I Care?

👍 Yes to Finimize

😭 In case you missed it

Older messages

🍑 Nike breaks the internet

🌍 New event: A Tale of Two Economic Recoveries

🤞 Goldman has a new stock-picking strategy

🚨 Big banks' life of crime

👋 Say goodbye to TikTok

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