by Greg Valliere, AGF Management Ltd.
Insights and Market Perspectives
Author: Greg Valliere
May 14, 2020
AMID ALL THE GLOOM — the downside economic risks cited by Jerome Powell, the intensifying rift between Donald Trump and Anthony Fauci, the virus “hot spots” in rural America — comes a glimmer of hope on the front lines, as emergency room physicians piece together a cocktail that seems to reduce Covid-19 fatalities.
THIS MORNING’S WASHINGTON POST cites some cautious optimism from doctors who have developed a “toolbox” of drugs and therapies that many believe “give today’s patients a better shot at survival than those who came in only a few weeks before,” the Post reports.
MOST OF THESE TACTICS are still in the experimental stage, but on the front lines there’s guarded optimism. The Post article, by Ariana Eunjung Cha, reports that key components of the emergency treatment include:
Blood plasma of covid-19 survivors, “a rich source of antibodies that may help
neutralize the virus”;
Drugs to suppress the body’s own immune response, which some believe goes into
hyperdrive as it tries to fight an invader;
Anticoagulants, which decrease the risk of deadly clots;
Antivirals such as remdesivir, the Gilead drug that recently won approval from the FDA for emergency use.
ANOTHER ENCOURAGING SIGN comes from the World Health Organization, which reported on Tuesday that it sees “potentially positive data” in four or five coronavirus treatments. “We have some treatments that seem to be in very early studies limiting the severity or the length of the illness,” a spokeswoman said.
THERE ARE MANY MORE DETAILS in this extraordinary article, all leading us to hope that many small discoveries, made through trial and error, are coming together to reduce fatalities. Obviously, clinical trials are needed, some therapies are useless, and a vaccine seems to be many many months away.
BUT WE’LL TAKE ANY GOOD NEWS WE CAN GET as Congress gridlocks on aid and the markets realize how choppy and halting the recovery will be.
THE KEY, QUITE CLEARLY, will be on the medical front. During a pandemic like this one, the Post article says, “months have been compressed into days, decades into weeks. The knowledge accumulated during the past couple of months was due not to a single ‘eureka’ moment but rather a steady stream of small discoveries.”
WARP SPEED ON THE FRONT LINES: The article quotes a physician who said “things have changed almost completely, from knowing nothing at all and going on hearsay from Milan, Seoul and Wuhan — to saying, ‘Well, this is something we know we can do.'” The ER doctor said “it’s a different world today compared to just a few months ago.”
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), Highstreet Asset Management Inc. (Highstreet), AGF Investments America Inc. (AGFA), AGF Asset Management (Asia) Limited (AGF AM Asia) and AGF International Advisors Company Limited (AGFIA). AGFA is a registered advisor in the U.S. AGFI and Highstreet are registered as portfolio managers across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF AM Asia is registered as a portfolio manager in Singapore. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
© 2020 AGF Management Limited. All rights reserved.
This post was first published at the AGF Perspectives Blog.
