Omicron – Will the ASX crash?

Omicron – Will the ASX crash?

COVID

A new strain of COVID-19, Omicron, first detected by virologists in South Africa threatens to derail the fight against the pandemic around the world and potentially the ASX and other financial markets.

Will Omicron cause the ASX to crash?

If Omicron proves to evade our current vaccines and is anything close to as deadly as other strains of COVID-19, it could very well derail financial markets around the world. However, it is important to understand why. We can liken the financial markets to an elaborate line of dominos. As the market rises, new dominos are lined up one after the other.

The market has more than doubled since the COVID sell-off that ended in March 2020, only last year.  We have a very big line of dominos. Omicron is just one of these dominos. Should it fall, a chain of events that knocks over every domino that has been set up over the last 20 months could ensue.

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