Fear, not calculated trading, is behind today’s Covid market crash
The Thanksgiving gathering may have calmed many into feeling the pandemic is over. Looking at the stock market today will shatter this illusion.
Concerns about a new, severely changing type of Covid-19 virus that has been identified in South Africa have shaken investor confidence. Stocks are dropping all over the worldOil prices are falling, bond yields are falling – even Bitcoin is feeling the heat. There is a wide return to frenetic topic-based trading. Vaccine stocks and pandemic games like Zoom are on the rise Airlines shares are falling.
What we see is fear and uncertainty. Sell first, ask questions later. Lower volumes globally due to the Thanksgiving holiday is likely to exacerbate volatility.
What we don’t see is the markets are smartly pricing the impact of this new development. Scientific experts have yet to draw conclusions about the mutation, currently known as B.1.1.529, and there are fewer than 100 confirmed cases.
This does not mean that fear is misplaced. Early evidence suggests that B.1.1.529 is significantly different from other variants, and in fact, the worst case scenario is that it is much more lethal, infectious, and vaccine-resistant than we have actually encountered.
But we don’t know that yet. Similar shock waves in the market caused by the delta variable during the summer finally calmed down. Although it has led to an increase in cases around the world, modern science has been able to tackle it and move forward. Hopefully the same will be said for this variant.
But for now, investors will have to put up with heightened uncertainty – the markets’ worst enemy.
*** Join MarketWatch Editor Jeremy Olchan and Economist Stephanie Kelton as they talk with business, technology, finance and government leaders about the next phase of money evolution, and meet real people whose lives are changing as these new ideas are put to the test. Listen to the Best New Money Ideas podcast.
The new changing triggers of the Covid-19 wave of travel restrictions
European and Asian governments were scrambling on Friday to impose new travel restrictions over concerns that the highly mutated strain of coronavirus, first identified in Botswana, could prove to be resistant to vaccines and possibly spread faster than previous variants.
The strain, called B.1.1.529, is “TheMost disturbing we’ve seen‘, according to Dr Susan Hopkins, Senior Medical Adviser to the UK’s Health and Security Agency. However, data is limited and experts are working to understand its true impact.
United Kingdom, Germany, Italy and Singapore Friday ban imposed When entering from South Africa and neighboring African countries, the European Commission proposes to member states to activate “emergency brake” Allow a ban on air travel from the region.
World Health Organization It is scheduled to meet on Friday To decide whether to classify the new variable as ‘of interest’ or, more seriously, ‘of concern’.
According to a South African scientist 90% of cases In the Gauteng area around Johannesburg due to the new breed. Officials in Hong Kong and Israel said they had already identified cases of the new variant for travelers who had gone to South Africa.
What then: Besides the immediate travel ban, fear of the virus, if it continues in the next few days, is likely to lead to more severe restrictions than those already considered to counter the current fast-spreading wave of the virus. in Europe.
With so many Black Friday deals, what you can’t buy
Nearly two million more people than last year are expected to shop over the weekend during Cyber Monday, with two-thirds planning to visit stores in person today to look for Black Friday deals. Higher consumer prices may make bargain hunters more difficult, MarketWatch reported.
Playstation 5s and
Xbox Series Xs gaming systems and consoles were especially rare During microchip shortages and supply chain delays, they’re unlikely to be discounted, “so don’t make them your focus,” said Kristen McGrath, “The Real Deal” editor at RetailMeNot.
Exercise equipment, such as a
Bike or even free weights tend to sell out towards the end of December, people decide Get better health for the new year. Black Friday TV deals are mostly for older models. Newer TVs are coming closer to the Super Bowl.
Slickdeals tracks clothing discounts running roughly the same as previous Black Fridays, around 30%, but shoppers face relatively Pre-sale price hike this year. Better deals may come later as stores clear inventory to make room for the upcoming season, according to MarketWatch.
McGrath told MarketWatch that furniture is also another tough sell, unless a new sofa or table is urgently needed now. Big furniture sales tend to appear Presidents’ Day in February.
What then: The NRF estimates that 58.1 million people will shop on Saturday for small business, and 62.8 million will shop online on Electronic Monday. It expects consumers to spend an average of $997.73, with overall spending increasing 10.5% to $859 billion.
–Janet H Chu
Thanks to the escalation of weekend travel tests of the largest American Airlines
The number of airline passengers increased this weekend, It is expected to reach 20 million For nine days through Sunday, it will test the ability of the country’s largest airlines to handle the biggest jump in travel demand in nearly two years.
Offer employees half-hour wages for peak days at work, and a bonus of $1,000 for perfect attendance From November 15 to January 2.
Offers $1,000 to flight attendants who don’t call out from work until early January.
which canceled more than 2,000 flights in one weekend in October and Cut her flight schedules In November and December, it will hire an additional 5,000 employees in the fall and winter.
It has hired staff and an anticipation of 5.6 million passengers from November 19-30, with Sunday being its busiest day.
More than 2.3 million passengers passed through security checkpoints at US airports on Wednesday, new pandemic high The number of passengers for the seventh day in a row exceeded 2 million, according to the Transportation Security Administration.
Ministry of Justice is Prioritize litigation For crimes committed on commercial aircraft, arranging for accident information to be shared with the Federal Aviation Administration. Eight people face FAA collective fines $161,823 for behavior involving alcohol.
What then: European air travel was expected to be robust next year, but new lockdowns to slow another surge in Covid-19 cases could threaten the industry’s recovery. The United States advises against all travel to Germany and Denmark.
– Janet H. cho
Do you remember this week’s news? Answer the quiz below about this week’s news. Tell us how you did it in an email to [email protected].
1. Vong has been under pressure from activist company Jana to sell herself since late summer. Which telecom company is buying the cloud telecommunications company, in a $6.2 billion deal?
Dr.. NetScout Systems
2. The Biden administration announced that the United States would use its National Strategic Petroleum Reserve to help bring down the gasoline prices that fueled inflation. What other country has also announced plans to tap into oil reserves?
NS. United kingdom
Dr.. All that is beyond
3. The average cost of Thanksgiving dinner is up 14% this year, according to the Farm Bureau. How much has a 16-pound turkey costing this year?
4. Where does Samsung Electronics, the South Korean tech giant, plan to build a chip-making plant estimated to be worth about $17 billion?
5. In celebration of its 95th anniversary, Macy’s is selling 10 NTFs, or indestructible tokens, from its Thanksgiving Parade balloons with proceeds going to the Make-A-Wish Foundation of America. Balloons include:
a. A firefighter from the forties
NS. astronaut from the fifties
NS. Messi star from the 70s
Dr.. All that is beyond
—Newsletter Editing by Liz Muir, Calum Keown, Robert Steiner