By Angelos C. Tsigkopoulos, Publisher of The Decision Maker -
The social impact -
The Covid-19 pandemic, which broke out two years ago, became a huge public health threat, forcing governments to take steps that had previously only been seen in Hollywood movies. The measures have clearly had an influence on our daily lives, and by watching societies and quantifying the impact as part of a larger picture, we can see that the required limitations (lockdowns, curfews, and so on) have worn down the social tissue globally. After all, changing or even cancelling activities that define us as human beings in modern society cannot be considered good news for our general well-being.
But what about the business side of this global pandemic?
Let's be clear about one thing. We don't live in a utopia, so every crisis is a chance for all of us, whether we recognize it or not. The credit crunch of 2008, for example, saw a considerable percentage of investors throughout the world see their yields jump while others saw theirs plummet. The market's regulations can be harsh, but for all investors, "skyrocketing" or "plunging" are basics of global markets. "High risk – high reward," "low risk – low reward," an investment manager will frequently remind you, and those two pairs, to be honest, will become part of your investing decisions for as long as you participate in the "game."
The role of your qualified investment manager
One could claim that investors participate in the "game" in order to increase their earnings. Again, this is a fundamentally valid statement; yet, this is also where things may get complex and risky for your money. We can all agree that everyone's hunger for big profits is the same, but not everyone's appetite for risk is. This is when your preferred and qualified investment manager, as determined by the relevant official body in your country, enters the picture. He or she must assess your risk appetite in order to present you with the available investments that match your "Risk Profile" before making any investment decisions. After you've completed your risk profile, you may discover that your original goal of "maximizing earnings" has nothing to do with your risk profile as an investor.
A "risk averse" investment profile result, for example, identifies you as an investor who prioritizes capital preservation over the chance for a higher-than-average return. Does this ring a bell for any of you out there? It's only natural, given that the surveys used to create your "Risk Profile" typically include questions that filter your (true) needs, available capital, and targets over a certain time frame.
Investing in Covid-19 vaccine stocks
So, two years into the epidemic, market volatility has established itself as a pattern to which we must adapt. The economic turbulence caused by the Covid-19 pandemic has had a significant impact on financial markets, including stock, bond, and commodity markets, with crude oil and precious metals, such as gold, not being excluded.
In their pursuit of higher returns, astute investors rapidly recognized the potential of Covid-19 vaccination stocks and entered the "game." The conventional rule is that once an investment reaches the news, it is no longer considered an "opportunity." "Is it too late to join?" you might be thinking right now. I'd much rather argue that it isn't the case. Let me explain; while most vaccine manufacturers are publicly traded pharmaceutical large-cap behemoths, we must keep in mind that they are developing an entirely new product.
Despite the fact that this new product, the vaccine, is now widely available in the United States, Europe, and Canada, two important variables must be considered: first, the vaccine is still not accessible in certain parts of the world, and second, any new Covid-19 variant which may emerge could increase vaccine demand.
How to get involved
So you see the potential and want to be a part of it. Unless you are a seasoned investor, the best approach to learn more about this (or any other) investment opportunity is to meet with a certified investment manager, who, as previously said, must assess your risk appetite through the risk-profiling process. Then he or she will lead you in the right direction. Your investment manager will typically look at the company's vaccine manufacturing progress and any troubles they've had so far, because, like any other investment, the commercial success of a relatively new medicine cannot be assured. For example, earlier this week, a research revealed that several vaccines may be ineffective against the Omicron strain, which could hurt its market performance.
Having said that, in order to keep your portfolio balanced, your investment manager should keep an eye on the performance of other products in the firm's product line; despite the current high global demand for Covid-19 vaccines in the midst of the pandemic, the frequency and/or even need for boosters is still being debated for the post-pandemic period, putting the product's life cycle in jeopardy.
(Mr Angelos C. Tsigkopoulos is the Founder & CEO of Diorasis Capital Ltd and Publisher of The Decision Maker)
Disclaimer: Our content does not constitute investment advice; it has been prepared purely for information purposes, and nothing contained within should be construed as an offer, or the solicitation of an offer, to buy or sell any security, product, service or investment