Vaccine optimism is priced in – asset manager
News about the exceptional effectiveness of multiple Covid-19 vaccines about to be authorised have sent stock markets soaring.
Investors may be getting ahead of themselves, warns Pieter Hundersmarck, a fund manager at Flagship Asset Management.
Historically expensive markets are pricing in best-case scenarios for the distribution of vaccines, yet uncertainties remain.
It’s unlikely, says Hundersmarck, that earnings expectations will be met.
Trending, right now, on The Money Show:
The Money Show’s Bruce Whitfield interviewed Hundersmarck.
There are always opportunities…Pieter Hundersmarck, fund manager - Flagship Asset Management
Analysts were very pessimistic…Pieter Hundersmarck, fund manager - Flagship Asset Management
China has managed the pandemic incredibly well…Pieter Hundersmarck, fund manager - Flagship Asset Management
In South Africa… we see a very encouraging bounce…Pieter Hundersmarck, fund manager - Flagship Asset Management
The vaccine… will take time [to distribute] … it will bring normality in the next year or two…Pieter Hundersmarck, fund manager - Flagship Asset Management
Worst-case would be a continuation of lockdowns…Pieter Hundersmarck, fund manager - Flagship Asset Management
The risk is that earnings expectations don’t come through… a very likely case… FAANG stocks… their business models are incredibly robust…Pieter Hundersmarck, fund manager - Flagship Asset Management
If we see another big event… it will be tough to hold the line.Pieter Hundersmarck, fund manager - Flagship Asset Management
Listen to the interview in the audio below.
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