On Friday, we reported that the World Health Organization classified a new Covid-19 variant of concern. It’s called Omicron.
It prompted a sell-off in markets for one critical reason: we know very little about Covid’s new glo-up. In fact, we only know that it is spreading around Africa and Europe. We think it might already be in the U.S.
We don’t know if it is a so-called “escape variant”, a term used to describe variants which are impervious to the Covid-19 vaccine or its boosters. But even if it is, vaccine developers claim that they could optimize their existing vaccines — perhaps they can even create a “super-vaccine” (which would be effective against many strains of the virus.)
We also don’t know if Omicron leads to more severe disease, according to the WHO. That’s one reason why the FUD might be preemptive. At least at this present moment, it does not feel as though Omicron will result in lockdowns. However, no investor wants to get tripped up.
It might result in more aggressive mask mandates, which might harm recovering industries such as travel. However, given changing attitudes about the virus in the U.S., and the fact that lockdowns were not imposed during the Delta Days of Covid, it feels (at this moment) like Omicron is just a sequel nobody asked for.