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Omicron: JP Morgan: Omicron may signal the end of Covid’s pandemic, so buy a dip

New York: According to JPMorgan Chase and Company, the recent market turmoil caused by the emergence of the Omicron virus strain may provide investors with the opportunity to reopen and take the position of reversing commodity trading trends. Hmm.
Omicrons are likely to be more contagious, but in early reports they may not be fatal, which fits with historically observed patterns of viral evolution, with strategists Marco Kolanovich and Bram.・ Kaplan wrote in a memo on Wednesday. They said this could ultimately benefit the risk market as it could indicate that the end of the pandemic is visible.
“Omicron could be a catalyst for steepening (rather than flattening) the yield curve, rotating from growth to value, selling off Covid and blockade beneficiaries, and resuming the theme.” The strategist says. “Recent sellouts in these segments are seen as an opportunity to buy cyclical, commodity and reopening theme dips and take positions for higher bond yields and spikes.”
The emergence of new viral strains has recently devastated markets and countries around the world are tightening travel restrictions. Some health officials said it could take weeks to reach the verdict, but Australia’s chief medical officer, Paul Kelly, shows no signs of being more deadly than other strains. Said.
According to JPMorgan’s strategist, it fits into the historical pattern of less severe and highly infectious viruses, quickly assembling more severe variants and catalyzing Omicron for a deadly pandemic. May change to something similar to seasonal flu.
“If that scenario happened, WHO might have skipped all the way to Omega instead of skipping two letters and naming it Omicron,”-the last letter of the Greek letter-the strategist said.



Omicron: JP Morgan: Omicron may signal the end of Covid’s pandemic, so buy a dip

Source link Omicron: JP Morgan: Omicron may signal the end of Covid’s pandemic, so buy a dip

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