Wall Street Ignores Risks, Shoots Up on Vaccine Hope

“I almost could cry talking to you now ... I feel like I didn’t just get a vaccine, I got a shot of hope.”

That’s what Maggie Hagan, a doctor in Wichita, Kan., said earlier this week when she received her COVID-19 jab, according to The New York Times.

Thousands more high-risk health care workers on the front lines of the pandemic fight and vulnerable elderly Americans are joining her, with millions more to follow in the weeks and months ahead. And, as I wrote last week, the process is underway in other countries as well.

It’s the kind of thing that has investors and average citizens seeing light at the end of the tunnel.

It’s also the kind of news — in conjunction with hopes for a “money flood” from Washington in 2021 — that has Wall Street’s speculative juices flowing.

A colossal resurgence in the issuance of low-quality debt ...

A record torrent of high-risk “SPAC” offerings ...

A company like this one that provides private helicopter, seaplane and jet service to the ultra-rich raising hundreds of millions of dollars in the market, while near-record numbers of Americans are having trouble feeding their families and unemployment remains near Great Recession-era levels ...

Money is being thrown around willy-nilly again, just like it was before COVID struck with full force in February.

At times like these ... when bullish sentiment approaches extremes ... I find it’s best to take a deep breath, step back for a minute and not get swept up in the euphoria.

Indeed, this is an opportunity to think about market risk rather than just market reward. And perhaps you’ll dedicate (or re-dedicate) yourself to the benefits of a “Safe Money” investing strategy rather than one grounded in high-risk speculation.

That doesn’t mean you have to forego seeking gains. My Safe Money approach is still working — very well, in fact. Several of the stocks and exchange-traded funds I’ve identified have spun off nice, sustainable gains ... and a healthy serving of income to boot.

Gold, silver and mining shares appear to have finished correcting right after Thanksgiving, too. That’s laying the groundwork for a fresh leg higher.

And, of course, other alternative asset classes that protect your wealth from unabashed, out-of-control money printing, borrowing and spending — like cryptocurrencies — are doing phenomenally well.

You can find out more about them here.

Long story short? This is a market with momentum headed into the heart of the holiday season. It’s being fueled by some strong catalysts and good vibes for a better 2021.

It’s also one with lingering ... in fact, growing ... risks due to the latest round of Wall Street recklessness and sky-high sentiment readings.

Keep that in mind as the end of a trying year approaches.

Until next time,

Mike Larson