Stocks violently dropped after news spread about concerns with the new Omicron variant. Whereas the S&P 500 (SPY) declined 4%, the small caps in the Russell 2000 endured a much more painful 12% decline. However, now there are signs that Omicron is no more scary than Delta with stocks potentially staging a comeback. What does the future hold for stocks? And what is the best trading plan? All that and more are explored in the commentary below.(Please enjoy this updated version of my weekly commentary from the Reitmeister Total Return newsletter).
Omicron is in the US. No surprise there. And so far, it seems no more scary than Delta which had little to no effect on the US economy...and thus the bull market continued even during Delta.
THIS is an important parallel to our current situation.