‘Bleak’ Friday Selloff, Omicron, and Volatility

Stocks have seemingly been on an uninterrupted trajectory since the 2020 low. When equities are up sharply, unexpected bad news may act like a wrench in the gears.

Enter Omicron

There are worries the vaccines won’t be as effective with the new Covid variant. But early reports suggest symptoms may be mild.

The situation is fluid, and traders are trading on headlines right now.

• It’s talk of mild symptoms and a quick vaccine versus
• Talk that it may take longer to produce a new vaccine and current therapeutics may be less effective.

Bottom line—how might Omicron affect the U.S. and global economy? It’s an unknown; hence, the renewed volatility.

Investor’s corner

What should you do?

Long-term investors have a financial plan. Diversification is critical. It doesn’t eliminate risk but helps manage it.

The temptation may be to time markets. But that is nearly impossible. When might markets peak? When might they bottom? Few, if any, get this consistently right.

Time in the market, not timing the market, has historically been the best long-term path for wealth creation and reaching one’s financial goals.