The media seems to attribute the current sell-off to new Covid variant.
However, I'm curious how much of the sell-off is actually due to Covid and how much is due to a less dovish Fed, as there were news that Fed might double its tapering and raise rates quicker than expected.
However, I'm curious how much of the sell-off is actually due to Covid and how much is due to a less dovish Fed, as there were news that Fed might double its tapering and raise rates quicker than expected.
If the market is indeed falling due to a new variant, in my opinion, the impact might be limited.
Even if this variant is more serious than earlier ones, it's very unlikely it will have the same worldwide economic impact as the original coronavirus pandemic in March 2020.
Even if this variant is more serious than earlier ones, it's very unlikely it will have the same worldwide economic impact as the original coronavirus pandemic in March 2020.
The world has been living with Covid and we all know the drill by now.
If anything, an argument can be made that Covid is good for stocks, as $SPX more than doubled since its Covid lows.
A new variant can give Fed an excuse to carry on with QE and keep the BTFD mentality alive.
If anything, an argument can be made that Covid is good for stocks, as $SPX more than doubled since its Covid lows.
A new variant can give Fed an excuse to carry on with QE and keep the BTFD mentality alive.
However, if the sell-off is actually due to Fed taking inflation more seriously, then we might have a problem.
In my opinion, it's more about how the Fed reacts to the new variant than about the variant itself.
In my opinion, it's more about how the Fed reacts to the new variant than about the variant itself.
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