BLACKSBURG, Va. (WFXR) — Investors may have noticed a rise in stock prices, due in part to the announcement from Pfizer.

A market on the rise can be tempting for investors to put more money into stock holdings, but experts are advising this boom should be met with a healthy degree of caution.

“Never ever invest your money based upon a headline, either good or bad,” said Derek Klock, Professor of Practice for Virginia Tech’s Pamplin School of Business.

The announcement from Pfizer on Monday, Nov. 9, of a vaccine has stock market figures on the rise, but Klock thinks it’s a bit premature to celebrate a return to normalcy.

“We don’t know how quickly the vaccine is going to be available and how quickly it’s going to be trusted and economically viable,” said Klock.

According to Klock, this vaccine isn’t the sole reason for the market’s trend upward. He says it’s due, in large part, to last week’s elections.

With a Democrat in the White House, and likely Republican Senate, and a narrowing part gap in the House, political gridlock is something that appeals to the market.

“Gridlock is a standstill, and standstills are certain,” Klock said. “We all know that markets hate uncertainty. And so, the longer we can keep things status quo from a political front, from a foreign relations front, from a taxation front, the better that is for the stock market, in the near term.”

Klock isn’t advising against investing, now. He says if someone wants to invest, invest, but don’t do it because of what’s happening in current events.

A vaccine, though, could mean a healthy market and investment opportunities could be in the near future.

“If Pfizer comes through with this, then normal-ish in eight months and really close to normal by next Christmas looks really good,” he said. “This is a very long game, and while we’re closer to the end than we were I would still say the tunnel is very long.”

Klock predicts market numbers will fall back to what they were before the November election in the near future.

Latest Stories