Investing Wisdoms, But Vaccines

Last Updated on May 1, 2022 by Chin Yi Xuan

Not sure about you, but I find the way different people respond to the Covid-19 vaccines very fascinating.

This is especially true when it comes to the voluntary jab of the AstraZeneca (AZ) vaccine.

Some downright rejected the vaccine due to the fear of risk over blood clots. Some were hesitant and missed out on the offer. Some, just like my mom (and eventually my whole family), were decisive.

To me, the scenes above look just like people’s behavior when it comes to investing, don’t you think?

Now, there is no absolute right or wrong way to make decisions, but I do think there are ways we can use to make better ones:

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Risk-to-Reward: Are you worrying about the right thing?

Consider these few things:

Everyday since mid-April, there are more than 2,000 Covid-19 cases in Malaysia, with Klang Valley ‘proudly’ leading the numbers most of the days.

According to Malaysia’s health ministry, the chance of developing blood clots after taking the AZ vaccine is only around 0.0004%. This is much lower compared to taking birth control pills (0.05-0.12%) or being a smoker (0.18%).

On the other hand, the AZ vaccine has about 70 – 80% effectiveness against the virus.

A 4 out of 1,000,000 risk (low risk) vs a 70 – 80% protection against the virus (high reward)? I’d happily take the odds.

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Time in the market > timing the market

To wait for your preferred vaccines because the AZ is ‘risky’ is like an attempt to time your investment for the best entry: you never know for sure when it is happening.

I especially love this quote from British Medical Journal, by Professor Paul Hunter (University of East Anglia medical school in the U.K.):

“To decline a vaccine today because it is the Oxford-AstraZeneca or Johnson & Johnson vaccine in the hope of being able to get another vaccine sometime later carries a real risk of dying from Covid-19 before being able to get a preferred vaccine.”

On the other hand, the compounding effect of getting vaccinated ASAP is massive:

The sooner we get vaccinated, the sooner we can protect ourselves and the people we care and love.

The sooner people get vaccinated, the sooner we can get businesses and the economy running.

The sooner the world is reopening, the sooner I can go travel *sobs*.

See? Time in the market. You get the point.  

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This weekend, I’ll be taking my first jab of the AstraZeneca vaccine. Fingers crossed, I don’t wake up the next day looking like Eddie Peng.