Last Updated: January 18, 2022
According to the latest Bloomberg report, investment strategists are starting to express their concern that the economy’s growth is stalled.
Although a strong rebound of the economy was expected as vaccinations escalated, the positive prognosis has been marred with COVID-19’s delta variant running rampant. The return to normality isn’t looking promising at the moment, as cases are increasing and some restrictions are making a comeback.
The economic struggle is reflected in the S&P 500, which noted the most dramatic drop since May on Monday. Benchmark Treasury yields reached new lows as well. Asia’s stocks were also struggling, but have since recovered.
Northern Trust Bank chief investment strategist said, “If you look at the issue with the delta variant and COVID, it is a short-term concern, but if you look out to the end of the year most of the Western economies will have immunity in the 75% to 80% range.”
Is Now the Right Time to Be Investing?
Investment strategists have different takes on the matter, with some being more optimistic and accepting the volatility as something expected while others aren’t as relaxed. However, one thing is for certain—both groups had more optimistic expectations of a strong economic rebound compared to the actual situation.
No matter the expectations, the current situation is making some people uneasy about investing. Senior multi-asset strategist at State Street Global Markets—Marija Veitmane—says, however, “I am firmly in the buy the dip camp,” adding, “Stocks had a very strong first half supported by the earnings recovery, and we expect corporate earnings to remain strong.”
Antonio Cavarero, the head of investments at Generali Insurance Asset Management, added, “While macro conditions remain overall supportive for equities, valuations, seasonal trends and positioning leave the room for price corrections and volatility spikes.”
Basically, the consensus among these experts is that volatility is expected, especially in such unstable times; however, that shouldn’t discourage potential investors. In fact, many investors will use this dip as an opportunity to buy stocks at a lower value and gain more profit as a result.
As for ventures worthy of investments, it’s important to do thorough research before deciding on your stocks of choice. TaaS stock is rapidly gaining popularity, so you might consider looking through some of the most popular stocks in that field. Other popular stocks at the moment include major tech companies such as Apple, Tesla, Alphabet, or General Electric (GE). The pandemic has also made BioNTech (the developer of an mRNA vaccine with Pfizer) a frontrunner as it continues developing cures for other serious diseases.