#Play drive ahead full#

Tap Into AmericaвЂ™s Recovery With This 10.2% Dividend America almost never has a GDP growth rate ahead of the global growth rate (due to the many emerging markets that grow faster than developed ones like the US), and AmericaвЂ™s growth rate hasnвЂ™t exceeded ChinaвЂ™s since 1999. To say this is unusual is an understatement. In turn, demand for goods and services is set to boom in America, which is why economists are expecting 2021 GDP growth of 6.8% in 2021, almost as much as ChinaвЂ™s (7%), and ahead of the world GDP expectation of 5.4%. China has vaccinated just 2.8% of its 1.4 billion people, and it may be years until it reaches herd immunity.ДЄccelerating Vaccine Drive Fuels US Economy-and StocksДЄll of this means US-based companies will be among the first to see a return to normal business. IndiaвЂ™s Serum Institute, the worldвЂ™s biggest vaccine producer, has focused on domestic distribution, but itвЂ™s got a big job ahead in vaccinating one of the worldвЂ™s largest populations.Д¬hina, meanwhile, is focused on continued lockdowns and surveillance (meaning mainlanders must check in with a mobile app every time they leave their home or visit a shop, restaurant or building). The UKвЂ™s wide lead also provides a good benchmark for what we can expect in the US, whose larger vaccine production capacity means it should catch up in the next few weeks.ДЇor big developing countries, the story is more nuanced.

#Play drive ahead full#

The only countries beating the US on the vaccination front are Israel and the UK, with the latter already making plans for a full reopening in June, beating the post-Brexit EU due to their rollout problems. Canada depends on European exports, and the EUвЂ™s delivery of vaccines has been a disaster, with just a small fraction of the European population covered in the rollout so far, due to bottlenecks and problems at the continentвЂ™s vaccine plants, including the AstraZeneca (AZN) facility in Belgium, and other issues. Right now, weвЂ™re seeing an average of about 2.5 million doses being distributed across the US per day, meaning we could hit the bottom edge of herd immunity in about 50 days.

This is a disconnect contrarians like us can use to position ourselves for some nice gains and big dividends in the months ahead. That would be a surge in vaccinations thatвЂ™s put the US ahead of most of the world on the road to recovery, while at the same time, US stocks are lagging behind their global competitors. Patriotism is rarely a good guide when making investment decisions, but these days it just might be, as Americans now have a terrific reason to buy US stocks.