The differences between stock and forex market trading are stark, with this having been borne out strongly during the coronavirus pandemic.
For example, the recent decision of Joe Biden to drive through a $1.9 trillion stimulus package in the US will create further devaluation for the US Dollar, as base interest rates remain low.
Conversely, the stimulus package has already begun to send stock prices soaring across a range of verticals and industries, with vaccine shares providing an obvious and potentially lucrative standout.
But is now really the ideal time to invest in vaccine stocks? Here are some key considerations to keep in mind.
Which Vaccines Stocks Offer the Best Value?
There are a myriad of Covid-19 vaccines now being distributed across the globe, with the Pfizer and BioNTech offering having been the first to market.
This vaccine also boasted the highest efficacy in late-stage testing, ahead of the similarly effective and widely available Moderna offering.
To this end, Pfizer’s stock is one of the most appealing amongst investors at the beginning of 2021, with this company behind this equity set to generate a staggering $14 billion or more in profit by the end of the year.
This is despite the fact that Pfizer won’t profit from its coronavirus vaccine from the outset, with the company also poised to deliver adjusted annual earnings growth of around 10% year-on-year.
Crucially, these are risk-protected projections too, so they’re not dependent on the widespread use of the Covid vaccine or the success of its global rollout.
Another viable vaccine stock option to emerge recently is Johnson & Johnson, despite the fact that the company’s vaccine reported modest initial efficacy results. However, this vaccine requires only a single dose according to one UK study, so with some minor tweaks this could provide a huge boost to the firm’s share value.
Regardless of the final late-stage testing results, Johnson & Johnson shares offer a robust proposal to investors in 2021.
After all, this firm remains the single biggest player in the healthcare space, which is also one of the largest sectors from the perspective of current value and long-term growth prospects.
Should You Trade Individual Stocks or Through CFDs?
There’s no doubt that these stocks are inherently valuable, while their financial projections and long-term outlook makes them particularly viable from the perspective of investors.
Interestingly, stocks such as Pfizer or J&J also offer significant diversity in terms of the product ranges and market reach, creating a more reliable value proposition that can negate the innate volatility of the world’s market.
The question that remains, of course, is how should you trade your chosen stocks? While the most common option is to buy and trade individual stocks outright, this is often a rigid and costly practice that optimises your exposure in the marketplace.
Conversely, you could consider investing in shares through forex trading and vehicles such as CFDs. This is available through a number of trading platforms, while it enables individuals to access underlying assets at lower cost overall.
Most importantly, CFDs allow you to go long or short on specific stocks, making it possible to speculate on the performance of specific shares and trade without assuming ownership of the underlying instrument.