Heritage Market Pulse | Black Friday Edition

Heritage Financial Advisory

Welcome to the Black Friday Edition of the Heritage Market Pulse! If you were expecting a sleepy Friday, the stock market has other plans for you.

Today all across the US economy businesses will slash their prices in hopes of attracting new customers and more sales. In keeping with the theme, we are seeing prices slashed all across the stock market today as well. What's quite ironic, the stock market is the only place where things go on sale and no one wants to buy anything.

We are seeing a sharp declines across the board today, and the main culprit is the emergence of a new Covid variant found in South Africa. It's important to stress that very little is known at this point about this latest strain, including whether it can evade vaccines or how severe it is relative to other mutations....but that's not stopping the media machine from spinning this up into a full blown panic. What's exacerbating the moves in the markets is the fact that today is a holiday shortened trading session, and trading volumes are extremely light compared to normal days. Historically speaking as we look back over the past 18 months, selling into these sharp declines created by the emergence of a new variant has been the wrong move in the past and we expect it to be the wrong move this time again. Viruses mutate, that's what they have always done and that's what they will continue to do.

There is a silver lining to the sell-off today, as oil prices and interest rates have plummeted on the news. If you've been following along with us, you know that interest rates and oil prices have been a concern of the market lately, with the concern being that the Federal Reserve was going to be forced to raise interest rates to stomp out inflationary pressures. That narrative should be put to bed for a while, which will benefit growth investments. Join Mike Desepoli as he lays out all the things you need to know.