Omicron
Let’s talk about omicron.
Since the first known cases of COVID-19 were detected in China, we’ve seen a number of notable mutations as the virus moved across the world. Some, like beta and gamma, didn’t end up being a huge deal.
Others, like delta, spread rapidly and caused new waves of infection. Now we have another variant on our hands: omicron. And it could be a serious one. Unsurprisingly, markets reacted badly to the news last Friday and gave us our worst market day for the year.
Why? The short trading day and lack of overall volume over the holiday break gave the selling pressure greater impact on the market than it might have had under normal conditions.
We’ve seen that pattern before and it’s worth keeping in your back pocket: bad news over a holiday often leads to outsized market reactions.
Is omicron dangerous?
Well, we don’t know yet. And we won’t know for several weeks until scientists can determine how the variant will respond to current vaccines and treatments. If it’s more virulent, it could have delta-level impacts on travel, hospitality, and other parts of the economy. It could also turn out to be a tiny bump in the road.
We just don’t know yet. The market is laser-focused on omicron news so we can expect rocky times until the uncertainty clears (or something else takes over the chatter).
So, what can we do?
Rather than try to predict the unknowable or speculate wildly without enough information, let’s do something else instead. Let’s take a deep breath, step back, and focus on some ground truths:
Everyone is tired of this pandemic and ready to move on. But the pandemic’s not done yet. We will continue to see COVID-19 variants. Most will fade into the background. Some will be more serious. New vaccines and treatments are continually being developed and released. We have been adapting to the virus for nearly two years and we’ll continue to get better at it.
Life is a gift and every day is extraordinary in some way. Let’s cherish that.
Hopefully, we’ll look back in a few months and forget omicron ever hit the headlines. Until then, we wait, we watch, and we count our blessings. I’ll be in touch when there’s more to share.
The commentary presented herein contains the opinions of Lions Wealth Management, Inc., a State of Minnesota Registered Investment Advisor. This information should not be relied upon for tax purposes and is based upon sources believed to be reliable. No guarantee is made to the completeness or accuracy of this information. Lions Wealth Management, Inc. shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes, and therefore are not an offer to buy or sell a security. Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. This information has not been tailored to suit any individual.