A return of optimism

In recent weeks, we have received optimistic news on the COVID vaccine front from Pfizer, Moderna, and Astrazeneca. The efficacy of the vaccines varies between 90% and 95%, which is reassuring. Global stock markets have quickly rejoiced at the good news, although there are still some obstacles to the large-scale manufacture of these vaccines. This positive news has led to a significant sector rotation; the shares of companies most impacted by COVID have rebounded sharply (as have transportation, hospitality, and leisure). Conversely, defensive sectors such as manufacturers of food, home care, and paradoxically health care, have experienced some decline. The Swiss stock market being rather characterized for its defensive nature (Nestlé, Novartis, and Roche are big weights in the index) did not participate fully in the stock market rally.