Markets around the world had a bit of a sell off on the news that a new Covid variant is running loose in South Africa and possibly moving around Europe. The slumbering market bear has finally awoken!
US markets were down about 2.5% across the board.
EU markets were down about 4% across the board.
Asia markets were down about 2.5% for now.
We sold off some apple stock which we had been holding for some time now. We profited off the trade but our analysis on Apple made us take some profits and move to cash. We will acquire Apple again at some point but not before the stock corrects to where we think it is reasonable to buy.
The sell off, in our opinion, was inevitable, there are too many factors starting to chip away at the euphoria but we think this just the beginning. Whether it is runaway inflation, war, cash burn rates or new covid variants, we just don’t know what the next catalyst will be but we do know that we don’t want to be in the market when the sell off occurs. We did open a very small position in one stock today but we’ll talk about that in another post. We will wait to see what happens on Monday.