2021-11-28 21:25:17
What should be our plan for next week amid rising fear of new variant of COVID ?
To know the impact of new variant, first of all we must know a little bit about the new variant of COVID, which is known as Omicron variant. As per latest data, this variant has a large number of mutations, some of which are concerning. Preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other. The variant has found in Belgium, Germany, UK, Australia, Israel, Hong Kong, Italy. And this variant is firstly found in South Africa. Many countries including US and India have imposed travel restriction, especially from African countries.
How dangerous this is for the market ?
As per latest data, there is no strong conviction that this variant is deadlier than other variants though it is found potentially with highest growth in new infection. There is concern of reinfection as well escaping immunity system. This is why it is expected that Omicron most probably can evade vaccine dose too. To get to any concrete conclusion with valid proof it will take 1 to 2 weeks at least. Samples will be collected in multiple of labs for analysis. Stock markets around the world already have panicked and some negative effects already factored in. Next week Indian market will probably go further down if new variant is going to be found in US or in India due to increasing fear. Any new restriction measures put by government will force market to slide further. RBI will publish monetary policy on 8th Dec and probably will try to calm down market from fear of new variant. As market is already elevated higher side and inflation is at dangerously at higher level, this new threat will further make market slide down.
What investors should do ?
Being cautious investors, we must be looking for the information how deadly this variant is and how central banks around the world will proceed further. If it is found that it is not deadly as thought then market will see sharp recovery, hence providing good opportunity to accumulate stocks at lower levels. But before going to conclusion we must wait and watch for accurate information. One or two week, unless we get more clarity on this variant market will remain volatile so doing nothing is the best option as of now. We will try to inform you on time in future when to start accumulate stocks or to remain out of market.
Kaushal K Singh
Stock Shiksha
10 views18:25
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