Global stock markets rallied on the news that Joe Biden became President-Elect in the U.S.

They were feeling bullish as a lot of the pre-election uncertainty had been removed and they foresee more stability – which they like – in the White House under a Biden administration.

Indeed, as I was quoted by the Daily Mail, The Guardian, Reuters, Forbes, Yahoo Finance, The Street and Asia Times, amongst others, it’s likely that investors will even rebuff any possible legal challenges by Trump, as they will be focusing on the renewed certainty and stability that Biden residing in the White House will bring.

These will include key areas such as the trade dispute with China, keeping the U.S. in the World Health Organization, re-joining the Paris climate agreement and adhering to other international agreements and standing by long-standing international allies.

Joe Biden will need to work with the Republican-led Senate to obtain fiscal stimulus to bolster the economy. Although he may be faced with an uphill struggle in terms of obtaining the $3 trillion the Democrats wanted, a major fiscal package is likely to be on the cards.

This will give the markets a boost and point investors towards a broader-based economic recovery, rather than a narrower, tech-heavy one.

In addition, later in the day, markets were further buoyed, eventually hitting record highs in some cases, on optimism over a Covid-19 vaccine after drug firms Pfizer and BioNTech announced that their Covid-19 vaccine was 90% effective in tests.

London’s FTSE 100 soared on Monday by 5.5% and the Wall Street benchmark S&P 500 index closed 1.2% higher.

However, as I was quoted by The Guardian, Reuters, Forbes, MSN News, and many more, I believe that stock markets are being somewhat premature in their buoyancy.

Stocks, including beleaguered travel sector stocks amongst others, have skyrocketed following the news.  

That said, there’s still a long way to go yet, and we’ll find out later in the month whether or not the vaccine will be approved.

But I would advise investors to remain optimistically cautious and avoid the ‘buy everything’ mindset.

Investing over the long-term remains one of the optimum ways to accumulate wealth, and investors can benefit from an experienced fund manager who will help them seek stocks that are most likely to create and grow their wealth sustainably.

 
The world is still getting used to the endless changes that have arisen from the coronavirus crisis, which will unlikely be reversed, and investors must avoid complacency or be overly optimistic when an upbeat mood takes over the markets.

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