Markets Expect Only a Partially Effective Vaccine, Balyasny Says
- Hedge fund manager says markets see 50%-60% effectiveness
- That leaves room for unloved stocks to rally if shot is better
Photographer: Kevin Frayer/Getty Images
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Stock markets expect a Covid-19 vaccine to be approved this year that is only 50% to 60% effective, leaving room for some unloved equities to rally if the shot turns out to be more protective, according to Balyasny Asset Management’s Dmitry Balyasny.
Balyasny, co-founder of the Chicago-based hedge fund, said faster and more effective medical progress could bring buyers back to beaten down shares. Such stocks have been overshadowed by the climb in megacap technology equities that benefited from social distancing.