Stocks rise for third day since the Omicron drop
As evidence is beginning to indicate that Omicron may well be less deadly than the Delta variant of Covid-19 it seems determined to push aside, major markets around the world continued to rebound from the sell-off that stated the week.
Despite case counts spiking to record levels in the United States the markets were in risk-on mode on Thursday as the Dow, S&P 500 and NASDAQ respectively rose by 0.55%, 0.62% and 0.85%.
|💡More studies back up findings that omicron variant is milder|
Although scientist are still warry to declare it a victory, it seems patients are 80% less likely to be hospitalized if they contract the Omicron strain. And as world-wide vaccination programs advance as well as COVID medications get approvals, inverstors have a good reason to be bullish
The situation was similar in Europe where although concerns have been raised about the impact of record additional cases and the associated restrictions that are being imposed, markets are sanguine with the FTSE rising by 0.43%, while the CAC 40 was up 0.77% and the DAX added 1.04%
The consistent theme appears to be investors betting on Omicron being a milder version of Covid-19 despite it already proven ability to spread faster than any of the forms of Covid-19 that came before it. The selling pressure that was evident on Monday has faded and most commentators are now expecting the familiar Santa Claus Rally to occur next week and into the New Year.
Crocs shocks the market and pays a steep price for buying Hey Dude
Market watchers were taken by surprise when Crocs announced it would acquire Hey Dude, a maker of casual shoes for $2.5bn in cash and stock. Crocs is looking to acquire the privately held footwear company to diversify its product offering past it’s iconic closed-cell foam clogs.
While company management defended the decision and attempted to focus investor attention on the ability to expand the geographic reach of the Hey Dude line the market strongly disagreed with Crocs shares tumbling by 11.63% down to $123.53 per share.
|💡 Should you buy the dip?|
Despite the strange acquisition (Crocs paid $2.5B for a company they valued at under $1B), Crocs made an interesting move by purchasing Heydude. The company expects to gain more market share in an industry estimated to be valued at $160 Billion, and with their sales growing at a steady pace for the last 15 years many investors expect this trend to continue, for some that’s enough to buy and hold, while for others Crocs still has more to prove. check out an investor’s full analysis here
Still the share price of CROX has risen by over 90% during 2021 giving the Company additional firepower to make this acquisition of one of the fastest growing shoe brands in the market.
Bitcoin acts like a risk asset and surges back above $50,000
Much as stock markets rallied as the fears over Omicron continued to wane, Bitcoin and other Crypto assets were back in favour on Thursday. BTC rose 3.59% to $50,761.64 while ETH was back above $4,000 after a 2.72% rise to $4,109.25
Food for thought: How do think Bitcoin will react in the coming year?
“Someone is sitting in the shade today because someone planted a tree a long time ago.”– Warren Buffet