Well last Friday’s shortened trading session was closer to being Black Friday than going out shopping at 6 a.m.
News of the new variant of COVID in South Africa put the bears in charge and sent the various indexes and averages down over 2% in four hours of trading.
After some thought on the facts, the markets opened this week recovering territory lost Friday.
Mostly traders were acknowledging there won’t be the interruptions that were feared.
Reports indicated that shoppers were hitting the malls and ordering online.
The Omicron variant threat didn’t dim Christmas spirit.
Moreover, it was determined that the variant may not have any worse effects than what we deal with today.
We have accepted taking flu shots each year and may have to add the COVID vaccine booster too.
I have taken my shot and booster so far this year. Life is full of change and this is just the last iteration.
One of the most overly reacted pullbacks came in the value of crude with the price moving back to $70 before moving to mid-70s.
The travel market may feel a much longer impact of the new variant.
I am not sure the stay at home trade will find new favor.
I still see this as the recovery trade holding traction and find support.
We still have to deal with the impact of inflation.
I spent some time this weekend trying to explain economics to my four grandsons.
You could see the boredom from across the room.
I almost put them to sleep just talking about economics. I may have found a new calling to help with the sleep deprived.
Though the President appointed Chairman Powell for another term, that does not save us from the reality of inflation.
You can’t get past the fact that almost everything you do costs more. The worst sectors are in fuel, travel and autos.
Maybe this will be what this nation needs to fight the fact that most Americans are overweight. I doubt that though.
My only hope is to return to jogging and at my age that is less than no fun. I find that raising interest rates is the only reasonable action and the soon the better.
We’re moving back to some normalcy after almost two years. An adjustment up in interest rates is not welcome, but we have plenty of room before we get anywhere near actual high rates.
We are at essentially 0 and it will take numerous adjustments just to get up to 2, much less 3.
It will not be lost on traders and some will use it as an excuse to take profits at these levels, but that will be offset by positive earnings reports.
It is too hard to offset easy money and low interest rates.
Another Santa Claus happy holiday season for investors it appears.
