Billionaire investor Bill Ackman has said equities could boost if it turns out that the new Covid-19 variant symptoms are milder than thought.
Ackman is an American investor, the founder, and CEO of Pershing Square (PSHZF) +0.25%. He earned more than $2 billion at the time of coronavirus market crash in March 2020 believing that market would be heading downwards. Some of the money he made in a series of these bearish trades, he reinvested again “buying the dip”. Not only the bearish trades turned to be a good decision but also the bullish ones as equities skyrocketed due to huge stimulus packages. This generated further profits for the billionaire.
"While it is too early to have definitive data, early reported data suggest that the Omicron virus causes 'mild to moderate' symptoms (less severity) and is more transmissible. If this turns out to be true, this is bullish not bearish for markets," posted Ackman on Twitter:
A thought. While it is too early to have definitive data, early reported data suggest that the Omicron virus causes ‘mild to moderate’ symptoms (less severity) and is more transmissible. If this turns out to be true, this is bullish not bearish for markets.
— Bill Ackman (@BillAckman) November 29, 2021
He added further: “I should have said: bullish for the equity market, bearish for the bond market.”
I should have said: bullish for the equity market, bearish for the bond market https://t.co/Kvk0t4uViA
— Bill Ackman (@BillAckman) November 29, 2021
"It is not yet clear whether infection with Omicron causes more severe disease compared to infections with other variants, including Delta … More information will emerge in the coming days and weeks." – said the World Health Organization on Sunday.
According to a doctor from South Africa the symptoms of the new variant have not been very serious so far, but investors are trying to assess what impact it can have to worldwide economies as the virus is spreading globally.
The fear about the new variant caused markets to plummet on Friday. The S&P 500 (GSPC) +1.32% fell 2.27%, its biggest drop since February.
With the new variant on the horizon, traders are expecting that central banks will be less willing to reverse their stimulatory policies, which could cause them to start reinvesting their money into stocks.
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*Stock percentage taken on 30.11.2021 at 10:52.
*Robertson, Harry (29. November 2021) Business Insider: Billionaire investor Bill Ackman says it’s bullish for stocks if Omicron variant symptoms are mild. Last viewed on 30.11.2021 on https://markets.businessinsider.com/news/stocks/bill-ackman-omicron-coronavirus-variant-stock-markets-us-shares-2021-11
