Earlier this week, scientists discovered a new Covid variant that spooked the markets and S&P 500 sold off by 2.7% (down -126.61) and DJI was down -905.04.
Everyone panics that this would cause a new travel ban, new restrictions, and new lockdowns. Yet the scientists admit that they do not know about the new variant much yet. Supposedly, the new variant has a spike protein that has mutated to be different from the one the original vaccine was based on.
Moderna and Pfizer/Biontech announced that they can have a new vaccine updated in less than three months. Novavax and Moderna are already developing a new vaccine for this new variant of Covid.
This will likely create a little more selling early on Monday. I expect a little more volatility. There are some “unknowns” in regards to the variants and risks. The odds favor this being more of a buying opportunity and it wouldn’t be shocking if a low is put in early next week after the initial wave of fear-based selling has played out.
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