Global stock markets are “overthinking the positive vaccine news,” warns the Chief Executive Officer of one of the world’s largest independent financial advisory and fintech organizations.
The warning from Nigel Green, the chief executive and founder of deVere Group which has $12bn under advisement, comes as stock markets have soared after drug firms Pfizer and BioNTech announced that their Covid-19 vaccine was 90% effective in tests.
Londons’ FTSE 100 soared on Monday by 5.5% and Wall Street benchmark S&P 500 index was set to climb surge 3.9% when trading starts.
Green observes that: “The news is fuelling hope that economies around the world can soon return to normal and this is driving global stock markets.
“The vaccine development reports are, obviously, an important step in the right direction.
“However, I suspect the markets – which are already in a bullish mood due to the incoming Biden administration – are overthinking the positive vaccine news.
“They are being premature in their buoyancy.”
“There’s a long road ahead still. We will find out on the third week of November then as we wait to see if the vaccine can be approved or not.”
He cautions: “Stocks, including beleaguered travel sector stocks amongst others, are soaring on the back of the news.
“But I would urge investors to remain optimistically cautious and avoid the ‘buy everything’ mindset
“The world is still readjusting and many of the changes that have come about from the pandemic are unlikely to be reversed, including the workplace revolution in which more and more people are working from home.”
“An experienced fund manager will help investors seek those stocks most likely to generate and build their wealth sustainably over the long-term.”
The deVere CEO concludes: “Investing over the long-term on stock markets remains, as ever, one of the best and proven ways to accumulate wealth.
“However, investors must remember not to be complacent, over-optimistic or premature when an upbeat mood takes over the markets.”
