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· Posted on
February 21, 2024

Share markets saw a quick sell-off and thanks a lot, Omicron. Thanks A LOT.

Let's rewind to March 2020. The Weeknd's Blinding Lights was topping charts...and, oh yeah, the stock market crashed thanks to COVID.

What's the key learning?

  • Omicron has caused massive sell-offs in US and Aussie markets
  • A market sell-off occurs when a large volume of shares are sold in a short period of time
  • When this happens, it causes the price of those shares to drop dramatically.

Background: Let's rewind to March 2020. The Weeknd's Blinding Lights was topping charts...and, oh yeah, the stock market crashed thanks to COVID.

What happened: When COVID landed, share markets worldwide suffered their largest declines since the 2008 GFC. Fast-forward to today, and just as the world was beginning to open back up...a new variant of the virus comes a'knockin.

What else: Omicron, which sounds like it could be also be the next tech unicorn outta Silicon Valley, has caused massive sell-offs in US and Aussie markets. Thankfully, the markets have recovered a bit.

So what's the key learning?

💡A market sell-off occurs when a large volume of shares are sold in a short period of time. When this happens, it causes the price of those shares to drop dramatically.

💡Market sell-offs can be triggered by a few things. It could be:

  1. A bad earnings report from a company
  2. A new player coming into the market and threatening tough competition
  3. Or, news of a new COVID variant like Omicron.

💡Here's hoping we don't see as dramatic a drop this time as we did back in 2020.

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