Headwinds Could Turn Into A Storm

  • A much more contagious variant can wreak havoc in no time even in countries with high vaccination rates, as the Dutch and British experience shows.
  • Most of the vulnerable people are still protected there, but this isn’t the case in countries suffering from insufficient vaccine availability and/or vaccine hesitancy.
  • Early signs of waning vaccine efficacy could compound these problems, while it’s too early for firm conclusions here, keep a close eye on any increase in hospitalizations and deaths.
  • With world economic growth at risk, markets are likely to shift from worrying about inflation to worrying about growth and this could lead to a ‘risk-off’ period.
  • If you are fully invested, raise some cash, for instance by selling into Q2 earnings, which are likely to be very good.
  • Learn More »