Squeezing the "Covid Variant" Headline

Early reported data suggest that the variant causes ‘mild/moderate’ symptoms (less severity) and is more transmissible. Bullish for risk assets. Bearish for banks trying to get employees in cubicles.

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Heading into last week, we made it aware that our main focus was on corporate spreads widening, the US dollar rallying (hindering inflation and commodity strength), the VIX and the fact that cash was a viable position. All of which were foreshadowing into that heavy selloff on Friday.

In short:

Banks and conglomerate stocks (the Dow Jones old-head average) brought the market down Friday due to the new covid variant news, increasing the difficulty of getting their employees back into their little office cubicles. This is terrible for the banks that own these dead commuter cities but better for the internet and crypto. It is clear that banks and financials (XLF) are hurting…. Index providers recently proposed moving Mastercard, PayPal, and Visa out of the tech sector and into financials here…

This week:

Futures are ripping: Early reported data suggests that the Omicron variant causes ‘mild to moderate’ symptoms (less severity) and is more transmissible. If…