By Charles Abuede
The current bullish trend in global stock markets on the positive news of a covid-19 vaccine has been described as premature by Nigel Green, founder and chief executive officer ofdeVere Group, one of the world’s largest independent financial advisory and fintechorganisations.
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Green advised carefulness as the news created optimism and fueled hope that economies around the globe can return to normal not much longer.
His warning that the global securities exchanges are “overthinking the positive vaccine news,” comes as securities exchanges have taken off after pharmaceutical firms Pfizer and BioNTech reported that their Covid-19 antibody was 90 per cent viable in tests.
The news is fuelling hope that economies around the world can soon return to normal and this is driving global stock markets.Conversely, the London’s FTSE 100 took off on Monday, soaring by 5.5 per cent; and Wall Street benchmark S&P 500 index was set to climb 3.9 per cent when trading begins.
“The vaccine development reports are, obviously, an important step in the right direction. However, I suspect the markets – which are already in a bullish mood due to the incoming Biden administration – are overthinking the positive vaccine news. They are being premature in their buoyancy,” Green warned.
“There’s a long road ahead still. We will find out on the third week of November then as we wait to see if the vaccine can be approved or not,” he noted.
Warning further, Green said stocks, including beleaguered travel sector stocks, amongst others, are soaring on the back of the news but I would urge investors to remain optimistically cautious and avoid the ‘buy everything’ mindset.
According to him, the world is still readjusting and many of the changes that have come about from the pandemic are unlikely to be reversed, including the workplace revolution in which more and more people are working from home.
He noted that an experienced fund manager will help investors seek those stocks most likely to generate and build their wealth sustainably over the long-term.
“Investing over the long-term on stock markets, remains, as ever, one of the best and proven ways to accumulatewealth. However, investors must remember not to be complacent, over-optimistic or premature when an upbeat mood takes over the markets,” said Green, the CEO of deVere Group, which has $12 billion under advisement.