We are closing in on Christmas this weekend and will probably see less than significant trading volume.
I’m always concerned as low trading volume can move the various indexes and averages much more significantly.
The early part of the trading week digested the news of the rise in the Omicron variant of COVID and the apparent end to the Build Back American bill debated in Congress.
That comes on the heels of last week’s news of rising inflation.
Of concern is the worry that the country will shut down again to defend against Omicron.
I am not sure the country can afford to shut down again.
At least now a significant portion of the public has been vaccinated and it is not clear that the variant will have the impact that the first surge had.
Undeniably, it will impact travel and the health care industry.
I’m not sure the country will react the same this time around nor can they afford the luxury of stopping in place.
It’s notable that all of this recent bad news is dampening the recent positive earnings reports.
Almost all sectors saw improvement.
Travel was back in vogue and the entertainment industry was witnessing a return to theatres and public concert venues.
The demand for energy has pushed gasoline prices back higher and it’s understood that all of this demand has sent inflation to the highest level in 40 years.
As we close the trading year, we will can reflect on what we’ve been through over the last couple of years and what we learned.
There will be much speculation on what will happen.
It will be easy to sell the sky is falling yet again. I don’t see that happening.
We have moved so far so quickly with medical technology adapting almost as fast as the virus mutates.
There also the factor that millions of people have either been vaccinated or contracted the virus and built up antibodies.
In many cases it is both.
Of significance is whether those who now contract the new variant are impacted as severely as we were two years ago.
Early evidence is that symptoms are less severe.
I am afraid that this virus will become endemic and be with us from now on, much like the flu.
It appears to me that people adapt and move on since there is little alternative.
Stopping proved to cost almost more than this country’s economy could withstand.
The next year will bring more difficult choices.
There is no going back to what we had before.
Life doesn’t offer that option, though we wish it could be possible.
I am never sure though that my visions of the past are not somewhat out of focus with reality.
I still will bet on a free market economy where people have the right to choose.
That doesn’t guarantee success but it does mean you have a chance which is all I ask.
