Finding a Covid core

10 min Read Published: 03 Dec 2021

The arrival of Omicron and its impact on investment markets have been significant. No sooner had I published the research article "Fear & Greed: Investing like Buffett" then the S&P 500's 14-day RSI hit 30, signifying oversold conditions. While it may suggest that the market is due a bounce, it is not to say that the market can't continue to fall, especially if Omicron turns out to fulfil everyone's worst fears. In the short term, the direction of investment markets will be influenced by what science discovers about Omicron.

Even if the fears of Omicron turn out to be overblown, the possibility of discovering a new more serious Covid variant is likely to be with us for years. What Omicron has shown is that the legs can be kicked away from investment markets overnight, now and in the future. Those assets that were outperforming can suddenly be propping up the investment performance tables.

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