Risk, like energy, does not disappear: it transforms. When the risk increases, stocks lose value and with the good news they win. It may be due to a bank merger, which drives market increases. November has been the best month in history for the Spanish stock market, despite the fact that stocks have been subjected to the threats of the coronavirus. Money published the most profitable investment funds of the last three years. The best year was 2019, still without the Covid, but this year, until October, most of the funds managed by banks and securities agencies had negative returns.
It was worse than in the Great Recession of 2008-2010, because in March factories, shops, restaurants, hotels and everything that has to do with tourism and leisure were closed. In the US, November was a good month. On average, the stock gained more than 12%. So far this year, until Friday, November 27, there have been extraordinary profits, with an average of 37%, but some companies have gained more than 120%, such as Nvidia, which makes advanced processors for 5G telephony, and Apple, with 58%. Those results came with breakdowns in supply chains and falls in industrial demand. The Netflix share gained 49.24%, as it does not suffer the effects of the pandemic. Subscribers kept watching his movies.
The bag discounts everything, and it is possible that it anticipated the positive impact of the next vaccinations. The UK starts and then Europe and the US will, but to varying degrees. Some paradoxes are taking place. China does not have infected people to test its vaccines and has to turn to countries where there are millions of infected to test the four it registered. We do not yet know if they are safe and if they can produce sequelae with unwanted effects. At the moment these are the statements of the companies that have designed them, but we need the diagnoses of the large international organizations, from the European Medicines Agency to the decision of the US agency. In Great Britain, a group of epidemiologists approved general vaccination with urgent measures, but starting with the most vulnerable groups, from health personnel and teachers, and then the population of nursing homes and all people vulnerable due to their age or ailments .
According to the WHO, a return to normality would require that 70% of the population be vaccinated. It would be the best news for everyone. The bag would break the seams, because in addition Spain will receive billions of euros from the Recovery Fund, a part lost. It will lower the risk and increase the chances of profit.
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