Every month we write a Market Commentary outlining the current state of the market, the biggest potential risks and, what we are doing within the portfolios of our clients. The past few months we have consistently stressed that one of the biggest risks is a new winter wave of Covid cases or a new variant, and just like that, all eyes are on the Omicron variant.
Black Friday is usually a pretty good day for the stock market, however this year it turned out to be a very red Friday, as all the major markets tanked on the news of the new variant. There is still little known about the Omicron variant, it’s symptoms and, the effectiveness of the current vaccines. That said, markets do not like uncertainty, and we could see increased volatility over the next few weeks or so.
However, we believe the most likely scenario is one similar to what happened with the Delta variant. Where it may be cause for concern and impact some economic data, the impact will subside. After almost two years into the Covid pandemic, Americans have learned how to deal with this new normal. We aren’t likely to see any new restrictions put back in place this time around. So, I would encourage investors to use any market sell off as a buying opportunity. We still see significant economic growth ahead, led by the pent-up consumer demand.
If you would like to receive our monthly Market Commentary or to have a discussion around your personal investment strategy, please reach us at AskFreedom@freedomfamilyoffice.com.