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Premium: Omicron identified in Californian from SA; Dow drops 1000 points
Last night, the Dow reversed by almost 1 000 points on news that Omicron had been picked up in California after a recent visitor to SA tested positive.
Right now investment markets are obsessed with the new Omicron variant. Last night the Dow reversed by almost 1,000 points – from up 520 to end 461 down – on news that Omicron had been picked up in California after a recent visitor to SA tested positive.
The S&P500 index has now lost 4% since Omicron emerged. Pundits say investors are nervous at fresh supply chain disruptions and, as a consequence, new threats to a global economic recovery.
This reaction should also warn us about where we are in the cycle. When prices are running, all news is interpreted as an excuse to push them higher. That's when you stay on the Bull. The reaction to Omicron suggests those days are gone.
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