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Risky trades are battered as markets curl up in fear amid news of a new variant of COVID-19 from South Africa. The “Naked” variant heightens concerns at a time when liquidity conditions are thinner in the middle of the Thanksgiving holiday.
US stocks and bonds will be traded later, but it will only be half a day and given that it’s Thanksgiving, most traders would already be out until next week.
But amid the fears of the ‘Nu’ variant, we can clearly see how the nervousness carries over even though the movements can be exacerbated by lighter exchanges in the last twelve hours or so.
I’m not the type to struggle with piped music, especially holiday cash and heading into the weekend, but it certainly makes things more interesting next week and potentially in the weeks to come. .
For now, I would expect fear to dominate, but as we get more details about the virus variant, maybe we can start looking at “buying value and selling” hysteria ”- one of my most favorite business concepts over the years.
The big issue to watch out for will be oil, as much of the bullish nuance hinges on reopening demand and the pandemic being put in the mirror. As such, this latest variation certainly throws a major curve into the picture.
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