By: Dividend Sensei
The worst pandemic in over 100 years resulted in a 34% bear market in just 1 month, the fastest in US history.
Now the delta-variant is causing a 4th global wave of the virus, including the in the US, and now Bank of America is warning that the US recovery might be at risk.
“BofA economists Stephen Juneau and Anna Zhou wrote in a Friday note that the variant is likely to lead to a shift in consumer behavior going forward, citing a 351% surge in the moving average of daily cases since July 21.
Accompanied by slowing vaccination rates, they said they “believe the current surge in cases could lead to a sharp pullback in services spending.” – Business Insider
Here are the three things investors need to know about the global 4th wave, and how to protect your retirement portfolio from potential catastrophe.
1. What’s Causing This 4th Wave
The Delta-variant is the 4th major variant of concern out of over 160 varients geneticists have located thus far.
The virus has several mutations that some studies indicate are resulting in 1,200 times more viral particles being exhaled by infected individuals, compared to the original strain of COVID-19.
That doesn’t mean its 1,200X as infectious. Current studies indicate it’s about 230% more infectious than the original virus.
What that translates to is an R^0 of 5 to 8 compared to 1 to 2 for seasonal flu.
The CDC has called this one of the most contagious respiratory viruses ever discovered, and what it means is this.
Among unvaccinated people, each infected person can be expected to infect between 5 and 8 new people.
That’s why some countries are now locking down again, such as Australia, and LA is reinstating indoor mask mandates.