Wall Street jumped on that theme over the weekend and attempted to calm investors. And sure enough, stocks rebounded this morning. “There are still more questions than answers regarding the Omicron variant, but after what happened on Friday, the bounce today is a welcome sign,” said LPL Financial’s Ryan Detrick. “We’ve seen other variants cause some indigestion, but after a little bit of time things were able to calm down and move forward. We’re optimistic that will be the playbook once again.” So, like in the past, the “playbook” is to keep buying every dip in sight. It’s worked out very well virtually every time this year. And it will continue to be effective so long as rates aren’t raised. Yes, stocks were likely to fall short-term independent of any new Covid scares. Thanks to Omicron, though, the market’s “bearish venom” may have been drawn out of equities all in one shot, and during a shortened holiday trading session to boot. For bulls, that’s probably good news and it suggests stocks won’t fall much further, if at all. Unless, of course, Omicron turns out to be worse than expected. In which case, look out below. |
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