Premium: Stocks rise again as world starts believing SA’s Omicron experience

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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