Investors should estimate the price that at least one vaccine will be delivered by year end which could drive the S&P 500 up 11 percent, Goldman said.
The Bank added, “Now this kind of timeline could see a great boost to GDP relative to a “no vaccine” case, important for the United States which is more likely to lead this vaccine race and is going to experience worse outcomes than in the whole Europe without a vaccine”.
Now here Goldman Sachs thinks that the S&P 500 could jump 11 percent from current levels, now should a vaccine come by year end.
Recently, a Goldman team of kamakshya including Trivedi, Zach Pandl, and Dominic Wilson wrote that “Now Options markets are underpricing the upside for equity indices from an early vaccine.”
Goldman Sach added,”We now see our baseline at consistent with the S&P 500 at around 3,300, the upside case with the S&P 500 at around 3,700.
As we know that the S&P was closed at 3,327 on the day of Wednesday, meaning that if this falls to 2,200 would be a drop of approximately 11 percent, while if it jumps up then it would be a gain of 11 percent by 3,700.
Central Banks across the whole whole world have gone through different stimilus packages. Investors are also being very sensitive to any vaccine related news, because of stocks recording huge losses and raliies pharmaceutical giants posted mixed results of the trial.
By the end of the year there would be 40 coronavirus vaccine candidates in himan testing, according to a recent business Insider review. And there are 164 researchs going on to develop a vaccine, scientist are giving every effor they can possibly give, according to World Health Organization (WHO).