Delta Effects

The Delta variant of the coronavirus has quickly become the dominant version infecting our fellow citizens. Since it is many times more contagious, investors have become alarmed. They worry that a resurgence of infections will drag our economy back down, short-circuiting the recovery.

This is possible, but when evaluating the numbers, close to 50% of Americans have had at least one shot of a vaccine. Another 20 to 40% have already been infected, so, also have some measure of immunity. There is some overlap of these two groups, but that still leaves a significantly reduced population available as potential hosts to the virus. By either vaccine or prior infection, the U.S. population is approaching herd immunity.

Responsible experts believe we are near peaking in the current wave of this pandemic, perhaps within a couple of weeks. Believing this is the case, worries about the economy caving in again seem overblown. The recovery from this epidemic was never going to be a straight line, but it is happening. Get vaccinated, take precautions, but stay steady my friends.

The Lonely Bull