BCA Weekly Commentary 11/13/20: Near-term Focus on Vaccines
Updated: Jan 1, 2021
SUMMARY. News of successful vaccine trials by both Pfizer and Moderna as well as their imminent approval by FDA appears have prompted a continued shift in focus on reopening of the economy in 2021 & those sectors that would benefit and away from growth/technology sectors. We have been expecting this for quite sometime. The headwinds of the economy going forward maybe less covid-19 than the new yet to be determined policies of our President.
INVESTMENT IMPACT. We continue to be positioned for better economic growth in 2021 in those companies that would benefit from the economy re-opening. Our optimism is tempered by the potential for a Biden administration that would undoubtedly present growth headwinds in 2021. We have made only minor changes to portfolios during the past week maintaining slightly elevated equity exposures across model portfolios tied to waning Covid-19 headwinds to come offset somewhat by higher taxes and regulation as well potentially higher interest rates. We remain watchful of valuations and signs that economic recovery continues. We suspect as we head into 2021, more attention will be focused on policy and its impacts of growth post election conclusion. Our base case continues to be a Biden win resulting in slow growth in the coming years with faster potentially in the very short-term.
Our model portfolio performance has been updated on our website as of 11/02/20.
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