“Omicron” Has Arrived: Here’s How I’m Preparing My Portfolio

It’s been another tough week for stocks.

Fears over a new COVID-19 variant – dubbed the “Omicron” – has spooked markets, sending the Nasdaq down 4% from it’s all-time highs hit last week.

It’s also brought comment from Federal Reserve chairman Jerome Powell, who said this in a prepared statement:

The last few words carry a lot of weight, as it means the Federal Reserve will “speed up” their asset tapering plans.

So what does this mean for your portfolio, and should you buy the dip?

Let’s analyze.

We Have a Playbook for the Omicron Variant

Back in July, we had a similar COVID-19 variant scare with the discovery of the “delta” variant. When the news broke, investors panicked and sent the S&P 500 down 3% over a two-week period:

We’re in the midst of...