Will the vaccine value rally continue for investors?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 15 November 2020

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

There have been some clear winners and losers in the rebound from the stock market crash as coronavirus and lockdown hit.

Tech stars, companies with a strong digital presence and those who have seen business increase as a result of lockdown – from B&Q-owner Kingfisher, to cycle and motoring store Halfords, and takeaway deliverer Just Eat - have been the only game in town.

But, as news of the most successful Covid-19 vaccine trials yet was revealed by Pfizer on Monday, there was a dramatic reversal of fortune: it was the companies beaten-down by lockdown that soared.

From aerospace engineer Rolls-Royce, to cinema operator Cineworld and travel-focussed caterer and retailer SSP, shares that had been languishing at lowly valuations and clouded by pessimism got a sudden dose of optimism.

So why did they rise so strongly, is this the much-heralded switch from growth to value investing and what does that even mean?

On this week’s podcast, Simon Lambert and Georgie Frost look at the vaccine rally, whether this marks a new chapter for investors and the economy… and what the risk of being disappointed again is.

Some investors hoping to take advantage this week couldn’t, however, as DIY investing platforms struggled under the weight of record days of trading from customers. Can those Hargreaves Lansdown, or other platform, clients try to claim any money back for trades missed?

Also on this week’s podcast, the potential capital gains tax raid being lined up – with perhaps some unintended consequences – and the surge of Curry’s PC World complains to This is Money.

And finally, the Government is soon expected to bring forward its ban on the sale of new petrol and diesel cars, with the favoured alternative being electric.

But if you act now and go electric but don’t have a driveway for home charging is it practical – and can you take a lead across the pavement instead?

Transcript

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0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and alongside me today is editor Simon Lambert.
0:06.0	And this week, the world got just the shot in the arm that it needed.
0:09.4	Some hope about a coronavirus vaccine.
0:11.9	Markets rose on the news, particularly those companies hit worse by the pandemic.
0:16.1	But Simon asked if this shift from growth to value investing is the real deal or a trap for investors.
0:22.1	Elsewhere, the Chancellor has slammed proposed tax changes,
0:25.2	which could see middle class people and entrepreneurs pay more capital gains tax,
0:29.1	calling it economic self-harm.
0:31.5	Also today, Curries is in trouble with its customers, still,
0:35.0	and who is liable if you trip over an electric car charging cable in the
0:39.7	street? We ask the questions you never thought you would want to know the answer to. Don't forget
0:45.0	you stay up to date with all the latest breaking money news. Just go to this is money.combe.uk
0:48.9	Or download the app. But first, stock markets around the world rose on the news from drugs company Pfizer,
0:56.4	that a vaccine could soon be on its way, ending this Kafkaesque economic nightmare that we
1:02.3	find ourselves in at the moment. Now, the Fancy 100 jumped 4.7% to over 6,000. The Dow was up almost
1:09.0	3%. What was interesting was where the biggest gains were made,
1:13.7	notably in those stocks hit worse by the pandemic, tourism and hospitality. The COVID winners,
1:19.4	on the other hand, well, they've done rather poorly. So is this switch of investing from growth to
1:24.0	value, i.e. those stocks undervalued by the market, the end of the beginning,
1:28.6	the real deal, or will investors be disappointed all over again? Firstly, Simon, welcome. What happened
1:36.1	this week to the markets on the news from Pfizer, looking specifically as I was talking about
1:40.7	there from where the money was flowing? And actually, what was that news from Pfizer?
	...

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