Issue 47 – Weird and Wild Swings Are Unwarranted

A Snapshot of the Market for the Week Ended December 3, 2021:

Fear stalks the markets for risk assets, on concerns that the global economy could be hit severely by the Omicron Covid outbreak and that the central banks will not come to their rescue. First there was Moderna’s CEO, Stephane Bencel who said: “I think it’s going to be a material drop regarding the efficacy of existing vaccines against Omicron.” Second, there was Jerome Powell, Chairman of the Federal Reserve, who told the Senate Banking Committee: “The economy is very strong and inflationary pressures are high, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which was actually announced at the November meeting, perhaps a few months earlier.” The combination stunned the markets because neither the incident nor the response were expected.


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By Hubert Marleau

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By Hubert Marleau