Positive Vaccine News Buoys Markets

Plus: Don’t Let Your Guard Down Amid Rally You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. NOVEMBER 9, 2020 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW Pfizer ([PFE]( announced that preliminary results of its COVID-19 vaccine showed 90% effectiveness, above the 60% to 70% most analysts had been expecting. Pfizer expects to apply to the FDA for emergency use authorization later this month after study participants have been observed for safety for at least two months. The drug does have side effects that include fever and aches, which are likely a little more severe than the average patient’s reaction to a flu shot. The study of 40,000 participants is still ongoing, and fuller results will likely be forthcoming. The FDA’s vaccine advisory committee will probably take up the application when it meets in December. Pfizer expects to have 50 million doses available globally by the end of 2020, and 1.3 billion in 2021. One distribution challenge is that Pfizer’s vaccine, which requires two shots, needs to be stored at super-cold temperatures. --------------------------------------------------------------- SPONSORED CONTENT FROM SENSIBLE MONEY [5 New Rules For Your Retirement]( Many retirees rely on a common rule of thumb for retirement withdrawals known as the 4% rule. However, this rule does not account for many factors in your retirement planning that may save you money or help you plan better. [READ MORE]( --------------------------------------------------------------- Also on the public health front: President-elect Joe Biden announced the formation of his COVID-19 advisory committee. As expected, the board’s three co-chairs are Marcella Nunez-Smith, a Yale physician and researcher; Vivek Murthy, a former U.S. surgeon general; and David Kessler, a former FDA commissioner. Celebrate today’s market rally, but don’t get caught off guard. They say the stock market is forward-looking, and “forward” was exactly where investors were looking as they bought up stocks -- especially [picks dependent on an eventual vaccine]( -- after Pfizer and BioNTech ([BNTX]( said their vaccine is more than 90% effective. But how bullish you are, and over what time frame, depends on just how far into the future you’re looking. To wit: James McDonald, CEO and chief investment officer of alternative investment manager Hercules Investments, celebrates this latest news but warns that “if the vaccine works as planned, the dominant risks to the economy seen by the Fed will abate and this will require the Fed to phase out its emergency support measures, which has kept the market rising since March. Left with fundamentals and the damage caused by COVID-19, I expect markets to fall as they would in response to any contractionary/recessionary environment.” There naturally are other factors to consider, such as the possibility of fiscal stimulus from Congress helping to pick up some slack if the Fed dials back its support. And certain battered parts of the market could continue clawing back gains, even if the broader indices pause or fall back. But it’s a reminder always to remain vigilant with your investments -- when one risk factor abates, another one often rises to take its place. Tell us what you think of Kiplinger! Please take our [audience survey](. SPONSORED CONTENT FROM LEAPLIFE [Buying Life Insurance: Easiest Step When Planning for the Future]( No matter which stage of life you and your loved ones are in, there is value to be found in owning a life insurance policy. [READ MORE]( LATEST INVESTING NEWS FROM KIPLINGER.COM [5 HSA Benefits You Might Not Know About]( [12 Coronavirus Stocks to Buy That Won’t Let Up]( [The 15 Best Stocks to Buy for the Joe Biden Presidency]( [Tax Wrinkles for Work-at-Home Employees During COVID-19]( [Sign Up Free for Kiplinger's Daily Closing Bell e-Newsletter to Get Ahead of the Market]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2020 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.