While it’s possible that markets, like they were in March, will be wary about knock-on effects from the pandemic hurting economic activity, employment and corporate profits, investors are seen having comparatively more confidence to ride out any short-term hiccups and focus on long-term profits.

So, with many seeing a light at the end of the tunnel, markets will look past whatever deterioration we get in the short-term with their focus turning towards an end to the public health crisis and a stronger economic recovery in 2021. In short, market trend-watchers only see the stock market rising and disregarding short term volatility or dips, here on out.

The US benchmark S&P500 index, whose moves are largely tracked by other stock markets worldwide, are ending the weeks at record highs as vaccine-related news keep coming in, returning to trade above levels seen before falling nearly 34 per cent from a February 19 record to its March 23 low, as the spread of COVID-19 forced the near-shutdown of the global economy.

The UBS analysts calculated the impact by measuring the number of “shock” days, in which the S&P 500 moved up or down by at least one standard deviation versus its average daily movement in reaction to positive or negative vaccine-related news.

Using their model, which gauges how much positive vaccine news contributed to a fall in a closely followed economic policy uncertainty index, they concluded that investors had priced in a 33 per cent to 40 per cent probability of a vaccine. Meaning, there is still scope for further certainty to be factored in.

On an industry level, however, it appears prospects for a vaccine are less priced in, the analysts said. They noted that shares of companies with the most to gain — such as hard-hit hospitality and leisure stocks — from a vaccine have barely outperformed since May, suggesting a vaccine isn’t really priced in across industries, they wrote.

Looking into a company’s operating history and industry environment may just as well be the difference between reaping significant gains or avoiding future losses. Newbie investors are often tempted to give up when they are bombarded with a series of technical jargons when deciding to invest in the stock market.

A company’s gross, operating and net profits indicate how efficiently it converts revenues to the bottom line.

However the difference is now, investors should also ensure to keep a close eye on micro fundamentals as well.

An analysis of micro fundamentals starts by considering the current price of a stock and comparing it to measures of value, like the key metrics of a certain stock, meaning the current price of a stock is compared to its dividend, its earnings, and to its assets resulting in valuation ratios such as its dividend yield, price to earnings ratio and its price to asset ratio.

The result and valuations can then be compared among stocks in the same industry groups; undervalued and overvalued stocks are identified by comparisons to the industrial norm. After this analysis, you then attempt to predict industry and economic developments that may positively or negatively impact the stock current price. Hence, making you as investors comparatively better positioned and informed to take a decision to buy or sell the stock, at an ideal price, in the days and weeks to come.