Market Update

Positive economic data took a backseat this week due to concerns surrounding the new coronavirus variant, leading global equity markets to react sharply and impulsively with a swift decline.
Our limited understanding of this variant - whether it could trigger worldwide lockdowns and economic downturns or if it's just another fleeting mutation (considering virus mutations are a natural occurrence and not always detrimental) - makes the market's rapid downturn seem like a typical "react first, analyze later" scenario.
The fresh memories of last year's lockdowns, which saw the global economy come to a near standstill, may have amplified this week's market declines. The fact that many traders are currently off due to the recent US Thanksgiving holiday on Thursday, 25 November 2021, could also have played a role.
That said, while we approach this with empathy given the human toll of the virus, it's worth noting that we've experienced such market patterns before. Markets tend to presume the worst, diving steeply, only to bounce back once the grim predictions don't come to pass.
Though we believe it's improbable for the stringent lockdowns and measures of last year to be re-enacted, it's premature to assert that this week's market turbulence is over and a quick recovery is on the horizon.
Historically, global equity markets have weathered various storms but have always struggled with uncertainty. This new variant has ushered in a wave of apprehension, even when concrete information about it remains scant.
Consequently, while the heightened market volatility might persist in the upcoming weeks, it's crucial to avoid hasty decisions and keep a long-term outlook. Today's market decline could very well represent a golden opportunity for investors, possibly making it a Black Friday shopping event for shares of reputable companies.