Shot in the arm or a shot in the dark? Complacency fears over Covid-19 vaccine equity market boost

Market rally too premature, experts warn

The equity market rally sparked by news of Pfizer's Covid-19 vaccine breakthrough last week may have been "over the top", with significant hurdles still ahead for investors, despite growing confidence among value-focused fund groups that their investment style may finally be about to break its losing streak.

Equity markets globally climbed higher on reports that Pfizer's vaccine could be imminently available, as investors saw hope the coronavirus-inspired economic slowdown could soon be nearing its end. Value stocks fared best throughout the week, with the MSCI World Value index up 1.5% in the four days since the announcement, compared to gains of 0.7% for the MSCI World and a marginal decline for the MSCI World Growth index, according to data from FE fundinfo. There were notable market moves for high-profile stocks, with British Airways owner IAG's share price climbing almost 40% immedia...