Analysts at the firm say
we are not becoming incrementally more bearish, despite Omicron risks:
- Omicron will have an "expiration date"
- Omicron is also pulling Fed and markets incrementally back into dovish territory. Look at inflation breakevens.
To support their views the firm also cite what they are seeing in South Africa
- oxygenated patients is broadly declining
- ventilated is still falling
- ICU is falling
- deaths are mostly falling
While on the Omicron subject, check this out from Adam:
- Mostly though I'm worried about China. The rules around covid and omicron are different there. There's virtually zero natural immunity and the sinovac vaccine might not work against omicron. Moreover, there is a serious risk of severe lockdowns that cripple the domestic economy and global supply chains.
