Stocks slide as fear settles in over COVID-19 Delta variant | Lehigh Valley Regional News
Monday was the worst day for the markets all year, with the Dow dropping more than 920 points from its low. It closed down just over 720 points.
Two main factors play a role. First, oil prices fell after OPEC agreed to increase production. Second: The rapidly spreading delta variant makes investors fear that we could be heading for another shutdown.
The number of cases has increased in almost all 50 states. In California, the mask mandate was reintroduced in Los Angeles.
Chad Meyerhoefer is Professor of Economics at Lehigh University with a major in Healthcare.
“The vaccination rate in the US is not really high enough to achieve herd immunity, and there are many differences across the country,” said Meyerhöfer.
And there are differences not just across the country but across the world that could further maximize the supply chain.
“If you look at one of our most important trading partners in the south – Mexico – less than 20% of the Mexican population is fully vaccinated,” said Meyerhöfer.
The CDC now describes the situation as a “pandemic of the unvaccinated”.
President Biden on Monday drew a direct line between vaccination rates and the economy.
“Please get vaccinated, get vaccinated now. It works. It is save. It’s free. It is practical. You know this virus no longer needs to hold you back. It doesn’t have to hold back our economy. The only way we’ll leave it behind is if more Americans are vaccinated, ”Biden said.
Obviously, this can make you nervous when you have money in the market. In general, sitting out is the best route for long-term investors.
But you might want to make sure you have enough cash on hand to weather the storm.
“To have emergency cash too. Especially in retirement. I know the normal goal is three to six months of cash, but when I retire, I tend to go for a year or two, liquid or cashless, ”said Jeff A. McElhaney Jr. with Edward Jones at Emmaus.
So is this just another dip we got used to during this pandemic? It depends on various factors.
Currently, only 50% of the US is fully vaccinated. This number must be reached in order to achieve herd immunity. And it will have to take place around the world as well to prevent further disruption.