Financial Markets Get Vaccinated
The big news of last week was Pfizer’s announcement that their vaccine was 90% effective against COVID-19. It also appears that some vaccines could be distributed before year-end. The market’s response? “This is a gamechanger.” Stocks soared to record highs and mortgage-backed securities and Treasuries prices fell sharply, causing rates to rise. Markets Tend to Overshoot Stocks and Bonds tend to overshoot to the upside and downside in response to market-moving news, and last
