Inelastic Pfizer Pills and the Lira is Tanking
The Turkish lira has lost enormous ground on the euro in 2020. It’s facing sanctions from the European Union, which it desperately wants to be a part of but is on the outside looking in, it owes huge debts to other countries, and has dwindling foreign exchange reserves.
The nation needs tourism to come booming back after coronavirus, and it would be useful for gold to pullback as many lira-denominated investments were abandoned for that safe haven.
The government in Turkey could do more to encourage foreign investment, too. As it stands, domestic stock pickers bracing for more inflation and currency devaluation over there.
In other news, drug-making giant Pfizer filed an earnings report yesterday to put numbers alongside its coronavirus vaccine candidate. Pfizer’s solution is among the top three leading the pack in late-stage clinical trials. It could get “emergency use authorization” very soon.
The good news for investors in Pfizer is that drugs are extremely inelastic products, meaning folks will purchase the boxes of pills they need to survive pretty much no matter what happens to the world and the price of those pills. Pfizer’s profits barely nudged through covid!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.