Stock markets are rallying on optimism of global economies reopening and hopes of a potential Covid-19 vaccine, with the US S&P 500 and the Dow Jones climbing to levels not seen since early March.
Boom Bust talks to editor of the Logical Investor Sean Hyman about the stock market sentiment and if its positivity is sustainable.
Hyman cites the CEO of the global biopharmaceutical company Merck, who said that even the 18-month time frame was “way too aggressive.”
“You’re probably looking at two or three years at best,” Hyman says, explaining that the average vaccine could take up to several years to actually get through all the trials before it becomes available to the public. There could be Phase One trials, two, three, and sometimes even Phase Four, he says.
“It takes a lot longer than people think. So, we are going to see stocks take another dive once the market really realizes this,” Hyman says.