Our Favourite Equity Sector Plays After Omicron
- By John Tierney
- 7 min read
Our equity sector views were based on a positive growth view. Friday’s revelations about Omicron and the ensuing selloff question that sunny outlook. For now, we still think the economy remains in reopening mode, although the pace will slow. Therefore, Friday’s selloff has likely created attractive entry points to enter or add to these positions.
How Will Markets Respond to Omicron?
New information about Omicron appears hourly. Currently, little information exists on how contagious it may be or, crucially, if it can evade current vaccines. Regardless, Moderna has already announced it expects to have an Omicron booster vaccine available by early 2022, which should limit its spread. The early general sense (which is subject to change!) is that Omicron may be a mild form of Covid. So far, there has been no uptick in hospitalisations attributable to the new variant.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.