Key to Recovery

 10 July 2021

Dear Fellow Investor,

Key to Recovery

A few days ago I sent a message to one of my clients, a doctor, an ENT specialist who works  at a government hospital. I asked him for an update to the current pandemic and why vaccination roll outs are increasing while infection rates are increasing.

His objective analysis

From what we know:

1 The virus affects everyone and the susceptible ones may end up in ICU with respiratory illness.

2 Hence why vaccines are prioritized for susceptible individuals ie the elderly and those with co-morbid illness etc.

3 Vaccines in general protect us from getting severe illness (respiratory illness)  requiring ICU admission.

4 That is to say vaccination prevents covid infection  from becoming severely harmful to us.

5 But the vaccine doesn’t prevent someone from transmission or viral shedding.

6 Which means the vaccinated individual would still be a probable vector of transmission.

7 Hence why social isolation is still practiced to protect the unvaccinated.

8 Today we have the number of vaccinated increasing by percentage

9 But the percentage as compared to the countries population is still minimal.

10 Large numbers of unvaccinated are still at risk.

11 Mass vaccination will tilt the equation the other side. Where a big percentage of population would be vaccinated and a small percentage of non susceptible health individual will remain unvaccinated. (The unvaccinated and the anti-vaxer  and those with allergies to vaccines)

12 When we reach this stage the number of serious injuries will drop.

13 Then we can consider opening borders.

Point 11 is the key to market recovery- mass vaccinations-  and that is happening.  It was reported in the Star last week that on the first 3 days of the week that over 1 million citizens were vaccinated, some with their first shot and the other with their second shot.   Momentum is building and that is what will turn the KLSE and attract bargain hunters.  The SGX is performing well as vaccination rates have increased and infection rates have dropped.  With the backdrop of low interest rates, massive liquidity and stimulus odds favour Asian market recovery. If the local politicians could get on the same recovery page that could be the catalyst for Malaysia to join the world stock market party.  

Take care
Bill

MITEC convention hall are vaccinating over 8000 per day. I had my 2^nd Pfizer shot here and it took less than 1 hour for the process. Is there light at the end of the tunnel ?