Investors continued to be buoyed by the prospect of Omicron’s relative mildness helping the world avoid a repeat of shocks caused by earlier Covid-19 variants. Last night Wall Street built on Tuesday’s rebound with the Nasdaq rising 1.2%, the S&P500 up 1% and the Dow adding 261 points (0.7%) to Monday’s 500 point gain.
It’s all about Omicron right now with confirmation from Scotland supporting a view the South African experience is a credible example for what the rest of the world can expect. Although Covid-19 infections have soared, hospitalisations and mortalities with Omicron are far below those of previous variants. Scottish researchers say the risk of hospitalisation is two thirds lower with Omicron; SA’s is 70-80% lower.
Initially, Western media and the pundits it relies upon rejected the SA research, then cautioned it was probably an outlier. Now the narrative is changing into a more rational one, confirming the SA experience is likely to be repeated elsewhere – and further economic shocks avoided. While many politicians are struggling to appreciate this reality, investors have reacted with gusto. I know which group I’d put my faith in.
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More for you to read today:
* Elon Musk’s Share-Selling Spree Tops $15 Billion. Tesla’s CEO has now exercised almost all the vested stock options due to expire in August. (the pic above reflects his rock star status)
* Can the Stock Market’s Big Gains Continue in the Years Ahead? Unlikely. Gregory Davis, CEO and CIO of Vanguard, reckons investors need to have a more-sober, realistic expectation for future market returns.
* Two Studies Show Much Lower Risk of Hospitalisation With Omicron. After studies in Scotland and South Africa, scientists still hedging on whether higher transmissibility outweighs reduced disease severity.
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