Hopes and fears of omicron dominated the stock market last week, with stock prices bouncing up and down like a yo-yo. Overall, the market ended the week lower than it started, but not by that much and it certainly could have been worse.
So where are we now with the omicron stock sell off? Investors have had a full week to decide whether to buy or sell stock based upon the news of the emerging Covid variant. I believe the market has priced in social and economic impacts from omicron, similar to the delta variant, and will stabilize. I think the market will only drop further due to omicron if exceptionally bad medical news results from the spread. On the flip side, there will most likely be long term positive social and economic outcomes as the world re-doubles our efforts to quell the pandemic.
Photograph by: Susan Q. Yin
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