Several reports that vaccine tests are showing extremely positive results boosted stock prices dramatically. President elect Biden started planning the transition to his Administration, even as President Trump refused to concede. Several economic numbers continued to show improvement. The number of new coronavirus cases surged to record levels over 140,000 a day. Let me catch you up on the events of the week. I’m Jordan Goodman, America’s Money Answers Man and this is the Money Answers Week in Review.
The stock market took off like a rocket when Pfizer reported preliminary results of its clinical trials that its vaccine is over 90% effective with no side effects. That is far higher than people had expected. Most vaccines are 50% to 60% effective. Other trials from Moderna, Johnson and Johnson and Astrazenica also seem to be showing good results. Stock investors think that if we can get an effective vaccine against the coronavirus in the next few months, the economy will be able to recover sharply as normal activities resume. Stocks always move before trends actually unfold, which is why stock prices are jumping in anticipation of an economic rebound. I think that is going to continue as long as we see more and more progress towards an effective vaccine.
President elect Biden started the transition process even though President Trump has refused to concede and is still claiming he won the election. Almost everyone now assumes that Joe Biden will become President in January. Biden is picking his cabinet members and plans to reverse almost everything that Trump has done in the last four years. That includes passing a large stimulus bill and raising taxes on the wealthy and big companies. How much he will be able to accomplish to a large extent depends on what happens in the two runoff races for the Senate in Georgia on January 5, since the outcome will determine if the Democrats or Republicans have a majority in the Senate.
The number of new coronavirus cases is skyrocketing to over 140,000 a day. There have now been over 10.3 million cases and over 241,000 deaths in America.
The number of initial jobless claims fell to 709,000 from 757,000 last week. Home prices continue to soar, as the average price of a single family home rose 12% to $313,500. A combination of low mortgage rates and low inventory of homes for sale has created bidding wars for homes similar to what happened around 2006.
I want you to have the tools and knowledge to navigate these very tricky times so you can improve your personal finances. I’m Jordan Goodman and this has been the Money Answers Week in Review for the week of November 13.