The jump in infection rates ahead of Christmas is a blow for all governments in the West. In the UK, the rollout of the vaccine will not be as quick as first hoped for.
But, there is good news. Another German company is moving ahead with late-stage trials for a vaccine predicated on the highly successful mRNA platform.
And less investors become distracted by Covid headlines, it is worth emphasising the bigger, more important investment themes that will play out in 2021. Top of the list is undoubtedly the big plans for renewables that have been given extra momentum by politicians. Encouragingly, China, the EU, Japan and the US have not been deflected by the short-term trials and tribulations of Covid-19. The recovery in General Electric’s share price is perhaps the best example of how old economy companies can reinvent themselves, faced with the challenges posed by climate change.
There are other areas of technology that investors would do well to consider more closely in 2021 – food, carbon-neutral construction and quantum computing are just some of the more obvious examples. There will be others. The pace of innovation is not slowing.
Summary
• London slips into Tier 3, as UK faces wave 3
• Vaccine rollout will not be quick
• But renewables lead investment opportunities for 2021
