We ask Tom if the Reopening and the Rollout of the Vaccine Have an Impact on the Market?
Transcript:
Katie Nealis: Thank you. We have another question from Taylor. “How do you see the rollout of the vaccine affecting the market? Is there something we should do to prepare for market changes that come up as things open up more?”
Tom Vaughan: Yeah, the vaccine is actually the story for the most part. I mean, if you take a look at what’s happening in Europe, for example, they’re way behind the US in the UK, in rolling out the vaccine. And now they’ve got these new variants, which are more contagious, and they keep closing down. So we saw closed downs, in all over Europe, France has been closed down and what have you, so that that has impacted the market negatively even here, because it is a global picture. Having said that, in my opinion all of that stuff is going to be worked out. And we are going to see a reopening like nothing probably we’ve ever seen before.
So we’ve never seen a pandemic in our lifetimes, that I think the pent up demand, the number of dollars that have been saved last year that didn’t get spent that are going to be spent this year is going to be incredible, and what they’re calling Epicenter stocks. And these are stocks that have been negatively affected by the virus that need the virus to be under control, to really take off I mean, Disney Land and Disney World are examples.
Restaurants, hotels, all of these things that have been impacted. I think you want to be invested in those areas, because there are now cut back their cost dramatically just to survive. I mean, airlines had a 96% drop in their airline miles, so they had to cut back to survive. And now at the big push, American Airlines just said they’re only 10% below where they were at the beginning of the pandemic right now. And I think they’re going to go away about that. Just because, again, there’s lots of pent up travel demand that’s going to happen. So the vaccine is the key, the roll out of that the smoothness is that how fast that happens. It’s not just here in the US, but worldwide. So yeah, it’s a really good question.