Hey 5-Star Trader,
The end of summer is fast approaching and as we head into fall some fear Covid-19 could have a resurgence. As a result, certain institutions are requiring vaccine mandates. This is obviously a sticky situation and until we see how this plays out we are left swimming in uncharted waters. No matter which side you’re on there is no question that this will have an effect on both individual businesses and the overall stock market. What will this mean for the economy and should we brace ourselves for conditions similar to what we saw at the peak of the 2020 pandemic?
Despite anyone’s personal opinion on this mandate I think overall vaccines will give a bullish sentiment to the market. Last year was full of uncertainty, but we can use the lessons we learned to try and keep companies in business. If establishments are allowed to be operational (barring customers are vaccinated), we will hopefully avoid the closure of non-essential businesses.
Additionally, Wall Street tends to favor mandates because it conveys a level of certainty. In this case, a vaccine mandate might imply that people are determined to keep company operations “business as usual.”.
The vaccine mandate is an ever-evolving situation. While I can’t imagine every place of business requiring it, the stock market will continue to react to the changing business practices. Stay sharp, because as we have learned, anything to do with Covid-19 has proven itself unpredictable.