The markets could take us on a rollercoaster ride this week, so buckle up. Of course, it could also end up being a big snooze. If you were paying attention last Friday, the Dow Jones Industrial Average dropped over 900 points (-2.53%) on breaking news of the “Omicron” COVID variant. And the volatility index (VIX) spiked by over 50%.
Now, with the Dow Jones sitting around 35,000, a 900 point drop isn’t as big a deal as it used to be. Stocks have been on a tear for some time now, so we can afford to give back some gains and still be alright. And Black Friday is always a weird day for the market – it closes at 1PM and there is usually very little volume. Because of this, moves up or down tend to be greatly exaggerated. I don’t read too much into it.
This Omicron story is just starting to develop, and no one knows where it’s headed. Let’s hope it’s a big nothing, but only time will tell.
I just wanted to prep you in case you got a case of whiplash this week. Just try and tune out the noise.
As I write this on Sunday night, the futures markets are up big time. But like I said, who knows where this will head over the course of the week.
It will most likely be short-term, and will definitely be temporary.
Mike Minter
