As we sit around the holiday table (with or without our loved ones), the old (Covid hysteria and personal decision making) is new again. On the bright side, the really nasty stuff from the old variant seems minimized. That’s from early studies as well as personal knowledge from friends and family. On the downside, this sucker spreads fast. Not saying we're all gonna get it (probably will tho) but the numbers are going to go up quickly. That too is from personal knowledge. Regardless of where you stand on the Vax debate, readying one’s self in the winter for freely circulating virus would seem to be the thing to do. Old school yes, but doesn’t seem like such a wild idea after all.
Looking forward financial thoughts… the next few weeks will be headline driven with Covid and the extreme stories the media is no doubt going to harp on. Being forward looking, the markets have this priced in. What happens after that is the question. We do expect the forward economic trajectory to be good and with it the eventual rise in yields. We do expect the “post covid” recovery to resume. One good thing to come from all this is the reassessment of risk that accompanies these pullbacks. Normally bodes well for longevity of bull markets. Said differently, “putting a little fear into markets along the way is a healthy thing”. For now, we still remain neutral in our allocations.
Enjoy the new year festivities, whatever they may be. Stay close to your loved ones, relish the time together, and stay optimistic. Life moves fast and goes by too quickly. Be present in the moment and stay well. Talk to ya in the new year!