Market history says omicron volatility isn't a reason for investors to sell

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Last Friday's VIX spike of 54% on the omicron variant emergence has been followed by more big moves in the Dow, but VIX history says the bull market won't end.

Traders work in the S&P 500 options pit at Cboe Global Markets Inc. in Chicago, Illinois.Lerner is looking to market history, and he sees an environment in which the patient investors will be ahead, if not in December, a year from now.

But the more important data point is the longer-term trend in the VIX history: there isn't any instance across the 19 biggest VIX spikes of the past three decades after which stocks weren't positive a majority of the time one month, three months, six months, and one year later. One month later, stocks were only up an average of 1%, but were positive 70% of the time, and the numbers get better with time.

The last time was the end of September when the financial issues at Chinese property giant Evergrande sent the global equity markets into a tailspin.The base case, Lerner says, is more of a tug-of-war until more of the news filters out and the market is able to get a better gauge on this new variant. This doesn't change his view that investors are more likely to be rewarded by sitting tight rather than sitting out the market.

"In February 2020, it was all new," Lerner said. "We didn't know how businesses would adapt, and now there is playbook. We saw they become more digital. There will be winners and losers, no matter what, but companies and consumers have adapted and will again."

 

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Well tell. That to the over leverage a holes.

But IT I$!! BIG PHARM IS PUSHING ANOTHER MORONICOLONIC AFTER THIS ONE, PROVE ME WRONG! HouseJudiciary

Definitely a buying opportunity or a chance to rebalance the portfolio. Thank you for this gift.

realDogecoinOG I just heard them compare it / tied it to the common cold.

Tapering is the major cause

No Joe Biden is, LetsGoBrandon

It’s a good reason to re-evaluate what you’re invested in though

The reason for sell if for the rich to get a big fat Christmas gift later at the expense of retail investors Omicron is just a side dish of topping No one die just a new strain and dip?!! Covid cases was high before nothing happen in 3months back then Omincron only a day old

MoonFall is…

Really? At what other point in history did 20% of a nation choose to cultivate AND distribute pandemic virus variants, rather than get vaccinated?

Use options as shock absorbers on portfolio holdings

They’re selling now before the Democrats raise the capital gains taxes to 69%? The market is set for a huge correction and the hedge fund managers are about to short it to cause a panic? It’s the end of the year and people are profit taking. Pick one or all of the above!

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