Bellevue Perspectives


Randy's Market Recap

Pipe

Friends and Clients,

Positive News on Vaccine Candidates and a Re-Opening of the U.S. Economy Excites the Bulls

Another crazy week for the United States financial markets as investors absorbed more news related to movement on a vaccine to treat the COVID-19 virus. The Dow Jones Industrial average rallied over 900 points on Monday, after news from Moderna that their Phase I COVID-19 vaccine candidate showed positive results. See more about Moderna below and one analyst’s opinion on Moderna’s vaccine technology. Full disclosure, HighTower Bellevue and or its clients own shares in Moderna.  https://clicktime.cloud.postoffice.net/clicktime.php?U=https%3A%2F%2Fwww.barrons.com%2Farticles%2Fa-coronavirus-vaccine-is-just-the-tip-of-the-iceberg-for-moderna-one-analyst-says-heres-why-51590072412&E=ncary%40hightoweradvisors.com&X=XID596yeVRn78670Xd1&T=HTAD&HV=U,E,X,T&H=aeaa45afdbc449bf9f615aedaf2c5ebc2f3131b7

According to an article in Barron’s on May 18th, 2020 https://clicktime.cloud.postoffice.net/clicktime.php?U=https%3A%2F%2Fwww.barrons.com%2Farticles%2Fhow-the-race-for-a-covid-19-vaccine-affects-investors-51589574899%3Fmod%3Dpast_editions&E=ncary%40hightoweradvisors.com&X=XID596yeVRn78670Xd1&T=HTAD&HV=U,E,X,T&H=44d0c571f3d8ef685317c5a9051dc6ef9fe7a4f6 over 100 different programs are under way attempting to develop a COVID-19 vaccine. Moderna wasn’t the only company to release positive news on the vaccine front this week. Johnson & Johnson provided an update on their progress, and I listened to the entire interview on CNBC Thursday morning.  https://www.jnj.com/johnson-johnson-announces-a-lead-vaccine-candidate-for-covid-19-landmark-new-partnership-with-u-s-department-of-health-human-services-and-commitment-to-supply-one-billion-vaccines-worldwide-for-emergency-pandemic-use Full disclosure HighTower Bellevue and or its clients own shares in J&J. J&J said it plans to release more details on Monday, but indicated their goal is to have a Phase I study fully enrolled by the end of summer. While that sounds like a long time from now, taking the time with the study design may in fact increase J&J’s chances for success.  In addition, J&J indicated that their initial tests in monkeys were positive.

Even though the market breadth and volatility has improved, and the bond market is trading better, I do think the United States equity markets likely will take a pause to digest some of the recent gains from the last several weeks.  I do think stocks will eventually head higher over the coming weeks or months as the investors see light at the end of the tunnel and watch the economy open-up and see hopeful developments on the vaccine front.  If the spread of the virus were to ramp up quickly, I do think stocks would take another big hit, but I think that is unlikely as Americans and people around the world figure out how to maneuver around the virus and its ultimate spread. We all know the enemy and we all know how to best keep it at bay, we just cant see it, which makes it that much more challenging. Stay safe and keep your family and loved ones close during this unprecedented times.

Enjoy your Memorial Day weekend!

I plan to produce these Market Moment notes from my office in my basement every week on Friday.

Please let us know if you find them helpful.

In addition, if you want a second opinion on your portfolio or your retirement planning we are more than happy to provide one. We want to thank our community and our clients for making introductions to other people who can benefit from our services.

Stay safe and keep your family close during these difficult economic times.

More next week.

Randy

Partner Hightower Bellevue Advisors

HighTower Bellevue is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.