Investors should take advantage of the dip brought about by the emergence of the Omicron variant of COVID-19, according to strategists of JPMorgan Chase & Co.
- The strategists believe the Omicron variant could be a catalyst for the steepening of the yield curve, and the recent selloff provides an opportunity for investors to buy the dip and position for higher gains.
- The strategists noted that investors should look into cyclicals, commodities, and reopening themes and encouraged to position for higher bond yields and to steepen moving forward.
- JPMorgan Chief Global Markets Strategist Marko Kolanovic earlier this year pushed for investors to reopen trades, as he defended value stocks noting that the pandemic has evolved.
The strategists reported that the Omicron variant could turn into a catalyst that would turn the pandemic into something like the seasonal flu.