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.