Recent stock market volatility has, in large part, been driven by news of the Covid-19 Delta variant and its tendency to easily spread. The Delta variant has caused an uptick in Covid-19 cases and subsequent hospitalizations. However, reports have shown that the available vaccines are still effective at muting serious complications. Nonetheless, the stock market reacted harshly to the travel industry with a large selloff. The Econ Wealth Investment Management Team’s analysis suggested an overselling in the industry presenting an opportunity to initiate/add-to several positions in well-known travel companies, potentially on sale. The Delta variant fears may be overblown, and the market seems to be realizing this as we experienced a solid rally Tuesday, lasting into Wednesday. This overblown fear opinion is further supported by strong company earnings kicking off the Q2 earnings season.
Thanks for tuning into another Economic Track with Zac. Tune in next Wednesday for more updates.