A Snapshot of the Market for the Week Ended November 26, 2021:
The broad market for stocks has gone nowhere in the past three weeks. Suddenly, on Friday, international investors dashed for shelter in safe-haven assets as a new variant of the virus arising in South Africa may challenge the effectiveness of vaccines, imperiling efforts to fight the pandemic. Yields on 10-treasury bonds dropped to 1.48%, the DXY traded as high as 96.88 and crude prices tumbled 12%. The Barron’s headlined: “Fear, Not Calculating Trading Was the Cause.” Nobody knows anything about the new variant’s transmissibility, severity or susceptibility. In this regard, the mini market crash was more about the fear of new government lockdowns and social distancing than of the variant itself.
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By Hubert Marleau
By Hubert Marleau