Please Pray for the Value Investor who went to WFH Stocks Last Week
Somewhere, there must be a value investor who finally gave in last week and switched to work-from-home stocks after missing the massive bull run for most of the year.
Value investors have been the black sheep of the 11-year bull run; we’ve seen plenty of value investors switch over to tech and growth with the huge rally in names like Zoom, Peloton, and DocuSign since March.
There must be a value investor who finally relented last week and rotated into work from home stocks, only to wake up to a 20% loss this morning.
It would’ve been completely understandable to get bullish on WFH stocks last week. Coronavirus cases were hitting record daily highs, indicating that the US was in for a long, stay-at-home winter.
The president and pharmaceutical companies had been pumping the possibility of a vaccine for months now, but it would not have been crazy to be bearish on an effective, widely-distributed vaccine coming to market anytime soon.
Even if you believed a vaccine was imminent, experts believe it won’t be available for children until late 2021. That still gives plenty of time for companies like Zoom to expand their market share. However, with the vaccine news this morning, we’ve likely seen all-time highs for Zoom and the other high-flying WFH plays.