Investors cautiously optimistic as Omicron arrives

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Investors cautiously optimistic as Omicron arrives

Omicron's arrival may have lifted healthcare stocks and hobbled shares of travel companies but analysts are cautiously optimistic as the dust settles.

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The potential more transmissible coronaviruses strain sent markets into a nosedive at the end of last week as markets fell into a nosedive amid thin Thanksgiving trade. Moderna Inc., the world's biggest glove maker, and Top Glove Corp. surged, while airlines took a beating.

With early reports fanning speculation the new strain may prove no more deadly than previous variants, some strategists recommend using the rout to load up on battered names. While the time for bottom-feeding may not have arrived, investors should at least sit tight.

UBS Global Wealth Management strategists, led by Mark Haefele, wrote : "No we advise against hasty shifts in investment strategy and recommend staying invested."

The healthcare industry is not a defensive and growth play, and valuations look reasonable.

Private equity and hedge fund strategies may not be able to beat. There is less chance of a selloff than in equities.

Jean Bovin, head of BlackRock Investment Institute, said that if vaccines or treatments were to prove futile against a new variant, None Stay is invested for now, still favors equities.

Omicrons can't cause growth downgrades, worsen risk sentiment and hit services sectors, especially in the near term. The new strain is not likely to change the otherwise solid picture for equities, as it only delays the restart, and we don't think it will affect the otherwise solid picture for equities: a strong restart and the possibility of continued low real rates. Ludovic Labal, portfolio manager of Eric Sturdza Investments, said that you do not need to have a barbell approach with a small bucket of Covid-winners and a small bucket of Covid-losers. The two have to offset each other. There are no avoid airlines because of travel restrictions. The volatility spikes to levels seen late last week are often reversed and present decent entry points, according to strategists led by Max Kettner.

There are no focus on relative value bets outside the news flow. The European large-caps' performance against the U.S. could see a reversal.

"No Still in wait and see," said Oliver Scharping, portfolio manager. He said that we hold on to a strong overweight in the broader energy complex and inflation-sensitive sectors.

None of the Merger Arbitrage has evolved or adapted to a remote-M A world, while SPACs have gone from niche to mainstream. Earnings are about 40% above pre-crisis levels and valuations near 30 times forward P E, according to Ben Laidler, global markets strategist.

There are no attractive reopening stocks, from airlines to hotels. Expectations are low and there are no virus fears. Earnings are still 65% less than pre-crisis levels. According to Kevin Thozet, an investment-committee member, none of the net equity exposure hasn't been lowered. The uncertainty of covid is offset by low real rates, as well as robust U.S. consumer spending and employment trends.

They have no exposure to reopening trades or travel.

Should there be any concern? Mark Stoeckle, Chief Executive Officer and Senior Portfolio Manager, said on Friday that there was a significant amount of algorithm trading, not fundamental.

The technology stocks that have proven their ability to generate revenue and cash flow growth will not be rewarded by investors. Such companies will prove to be more durable than the high valuation stocks. "We plan to retain our small overweight to equities, but are not actually buying the dip," said Rupert Thompson, Chief Investment Officer. The new strain and concern about Fed tapering make the near-term outlook quite uncertain, and markets are still near their highs. We don't believe that Omicron changes the outlook materially. If necessary, the mRNA vaccines should be able to be tweaked within a few months, and any restrictions imposed in the meantime are unlikely to derail the global recovery. None of the Wildfires Are Worse, and One Chemical Company Is Reaping the Benefits Reaping the Benefits