Why We’re Not Convinced By JPMorgan’s Kolanovic’s Buy The Dip Argument
Famed JPMorgan stock guru Kolanovic argues that we should buy the dip because the new Omicron variant is likely to accelerate the end of the pandemic.
This hinges on some indications that Omicron is less virulent (deadly) but more contagious than Delta and therefore the ability of the ‘good’ virus to crowd out bad virus.
This seems unlikely to us as contagions grow exponentially and therefore it is a much more important variable compared to virulency.
Things will be even worse if, as seems probable, Omicron also compromises vaccines.
For Omicron to produce a benign outcome, it really needs to be MUCH less deadly than Delta. Rapidly rising hospitalizations in Gauteng province don’t instill confidence in that.
This idea was discussed in more depth with members of my private investing community, SHU Growth Portfolio. Learn More »