Past virus scares ended up being a chance to load up on equities, and the question is if the same narrative is unfolding again.
The challenge here is that omicron likely wasn’t the only factor at play in the equity swoon, according to Peter Tchir, head of macro strategy at Academy Securities Inc. The other variables include less dovish central bankers and the fact that stock prices looked stretched on some measures.
“I wouldn’t be surprised to get a bounce as we decide omicron is manageable, but I would fade that bounce, as it isn’t all that is going on here,” Tchir said.
—With assistance from Sunil Jagtiani, Katie Greifeld, Enda Curran and Serene Cheong.
This article was provided by Bloomberg News.