What's going on?

A coronavirus cure might make us immune to one of the most devastating pandemics the world�s ever seen, but a recent report by Goldman Sachs suggests it could also leave some investors feeling a little peaky.

What does this mean?

The pandemic�s been ushering investors toward the relative safety of bonds, as well as to big US tech stocks that have benefited from global lockdowns. But Goldman�s now warned that once a vaccine eliminates coronavirus worries, investors might actually ditch those assets. In bonds� case, that�s because a vaccine that drives economic growth, inflation, and, eventually, a rise in interest rates will reduce the relative value of their fixed payments. Tech stocks, meanwhile, mightn�t look as attractive as the �cyclical� stocks that stand to benefit more from an economic recovery.

Why should I care?

For you personally: Keep your options open.

Investors may be reluctant to prepare for a �rotation� that might never actually happen, which is why Goldman�s analysts recommended they hedge their bets using options. For a small upfront fee, you can purchase the right to buy or sell stocks at a pre-agreed cost when�they hit a certain �strike� price. So you could buy a �call� (i.e. the right to buy stocks) with a higher strike price than currently, as well as a separate �put� (i.e. the right to sell) at a lower strike price than currently. That should allow you to benefit whether shares keep rising or drop significantly.

The bigger picture: Person, man, woman, trade war, taxes.

Another spanner in the works could be November�s US election: if the Democrats win big � which investors think is likely � Goldman reckons the risk of a trade war will fall and the risk of higher taxes will rise (tweet this). That could benefit emerging markets� stocks � though given how uncertain they can be, options might help there too.