Effects of the Omicron COVID-19 Variant on the Global Market
December 2, 2021
The global market has seen major changes this past week with the discovery of a new COVID-19 variant. There is no telling how long it will be before things start to settle down again, so now is the perfect time for you to work with your financial advisor and make sure you are taking care of your investments.
Financial advisors help take the emotion out of investing so that you can make decisions without being attached to your money.
The COVID-19 Omicron variant was discovered in Africa and is now making its way across the globe. The Omicron variant is so new and it's been discovered in only a few countries. So you might be wondering, how might that impact the stock market and my investments? This new discovery is causing more fear and volatility in global markets. We don't know how widespread this variant is, or exactly what its effects will be on the world economy. So far, there have been no reports of deaths from Omicron infection. But, we do know that people are definitely panicking and traders around the globe are citing "emotional buying and selling" as the reason for increased market volatility.
Emotional Buying and Selling Can Create Market Volatility
Investing your own money can be difficult because as human beings we are attached to our money. Emotional investing can be dangerous if you don't know what you are doing. A poor financial decision may be the difference between retiring when you want to and working for another 40 years. Even worse, a poor financial decision may be the reason why your family doesn't have enough money to go around.
It's possible that this variant will spread more quickly than the others, because it seems to be affecting younger people more severely. This could lead to an even greater global pandemic. Panic and fear can make others buy and sell in waves. It's important to remember that when investing your money not to make knee-jerk changes. Investors who do this generally are not following the trends and data that financial advisors have. Advisors do not know when the market is going to bottom out and neither do you. Focus on using a solid investment discipline that fits into your long-term financial plan.
Morey & Quinn Financial Advisors are Equipped with Additional Resources
So if investing seems like too much for you, lean on your financial advisor if you need to, that is what we are here for. A professional financial advisor can help you identify your goals and align them with resources available to you. In many cases, they can also access additional resources from their firms to help provide deeper insights, research and guidance on the markets, economic and monetary policy, and specific investments. The best part? They're generally not emotionally attached to your money like you are.
By Katie Bruno, CFP®, CDFA®
Morey & Quinn Wealth Partners
Raymond James® LIFE WELL PLANNED.
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Any opinions are those of Katie Bruno, CFP®, CDFA®, MIMFA, and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.
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