Market volatility is the new COVID-normal

Market volatility is back! And whilst December is historically a strong month for global share markets, this year could be different.

Last night the Dow Jones was up more than 400 points, then the news hit that the COVID-19 Omicron variant had turned up in California. This sent the market into panic mode, falling 500 plus points at the close.

And this is just a day after the head of Moderna said existing COVID-19 vaccines may not be as effective against the Omicron variant, which is now appearing in a growing number of countries around the world.


Experts are saying it’s premature to assume that Omicron could derail economic growth, but COVID is a winter disease and markets are always looking forward, now to the northern winter.

So what does all this mean for you?


Firstly, volatility can mean opportunity. Depending on your personal circumstances and risk profile, there might be opportunities to take advantage of the fluctuations. If that’s you, we’re happy to help!

Secondly, the rollercoaster could continue for quite a while, so remind yourself that investing in shares is a long-term game, and make decisions based on your long-term outlook.


What’s the economic outlook from here?


The arrival of the Omicron variant puts the travel industry under even more pressure, but it also puts small business under another round of pressure as we question our confidence to invest and grow – but watch this space!


Also keep in mind that the surfacing of new COVID variants is likely to continue for quite some time, so your investments in the share market both here and globally will continue to be volatile, and that is now the new COVID-normal.