The popular saying “Ignoring someone is the highest form of disrespect” is hitting our ex-President Trump smack in his face. Wall Street is hitting all time highs, unemployment has dropped to 6.5% and the vaccine for the coronavirus is ready to be rolled out nationwide in next few months. The United Kingdom has already approved the vaccine and is going to begin distributing to its citizens as early as next week. And, unfortunately for Trump, he is not a part of the news in any of these events.
Biden has begun to put some smart people in his administration – notably, Janet Yellen as Treasury Secretary, Anthony Blinken – Secretary of State, John Kerry – Special Presidential Envoy for Climate, Avril Haines – Director of National Intelligence and Jake Sullivan – National Security Adviser. These appointees are likely to bring back a semblance of normalcy to the White House and international relations. And Wall Street is paying attention to these appointments. Biden’s own ability to work with the senior members of the Republican Senate and the Federal Reserve is another bonus.
Trump is gone but the risk of vaccine administration still remains a big uncertainty for Wall Street.
Future Wealth’s View
Last week, we had stated that Trump is stuck in the first stage of grief – denial. It appears he has moved on from denial to delusion. At times, Mr. Trump’s outbursts seem like a story straight out of William Shakespeare – part tragedy, part farce. With more than six weeks until he leaves office, Mr. Trump remains as unpredictable and erratic as ever. But does he really matter anymore? The world has moved on without him and we are all better for it. He will not be missed. To quote Henry Adams: ‘I expected the worst, and it was worse than I expected’.
The real risk is that Wall Street has not quite priced into the market is how quickly and efficiently the vaccine will be delivered and administered to the 7.8 billion residents of this world. The logistics of providing the vaccine to the entire population of the world is beyond comprehension. Of course, we would all like ourselves, our near and dear friends and relatives, and our colleagues at work to be inoculated first so that we can get back to life as we knew it. But life does not always work that way, does it? Well, neither does Wall Street.