Weekly wrapper: Omicron, Robots and DAO
The crown option and human innovation affect investment and business.
The stock market is similar to a boxer who continues to strike, but does not decline – at least not much.
Financial markets on Thursday again intensified their position to grow after a week of uncertainty over the latest version of the coronavirus. Then came the November job report.
By the end of Friday, the Dow Jones Industrial Average fell 59.71 points or 0.17 percent.
Conflict vacancy report
The U.S. Department of Labor has issued a mixed job report. He showed that only 210,000 were created in November. The expectation was more than twice as high. At the same time, unemployment fell from 4.6 to 4.2 percent.
Clearly, some investors felt that adding fewer jobs than expected to an employment market saturated with unfilled jobs was a bad thing. It would be no surprise to see their return and market rebound next week. This is what happened when the news about Omicron appeared.
Omicron rattle market
Omicron was discovered in South Africa. This Thanksgiving announcement led to a sale of shares the next day.
At the start of trading on Black Friday, the Dow fell more than 900 points, or about 2.5 percent. Meanwhile, the S&P 500 fell 2.2% to intraday lows.
At the same time, vaccine companies have released immediate profits. Moderna went up by 25 percent, Pfizer by 8 percent and BioNTech by 20 percent.
Financials rose earlier this week and then fell again on news of Omicron cases in the United States. However, on Thursday the stock returned to growth when Moderna and BioNTech predicted that early next year they could prepare a new vaccine.
“If we have to make a brand new vaccine, I think it will happen in early 2022 before it really appears in large quantities,” said the BBC’s Paul Burton, Moderna’s chief physician. The Andrew Mara Show.
Some prominent investors were quick to call Black Friday sales an opportunity to buy.
Among them was Bill Ackman, founder and CEO of Pershing Square Capital Management.
Thought. Although it is too early to have definitive data, previous data suggest that Omicron virus causes symptoms of “mild to moderate” (less severe) and more transmitted. If this is true, then for the markets it is bullish, not bearish.
– Bill Ackman (@BillAckman) November 29, 2021
Jim Kramer, host of CNBC Crazy money agrees. He warns that investors should quickly gain shares, which, in his opinion, are quoted at “basement” prices.
“If you wait too long to buy these profitable stocks and Omicron becomes nothing more than a runny nose for the vaccinated – even if the unvaccinated enjoy their God’s right to hospitalization and death – I think you’ll look back and start yourself for what you missed some of these are obvious buying opportunities, ”Kramer said.
Kramer advertises four stocks owned by his charity as long-term purchases. These include Disney, PayPal, Master Card and Wynn Resorts
Training in Delta
Investment bank Morgan Stanley sees no reason to change its positive outlook on economic recovery.
Andrew Sheets, chief asset strategist at Morgan Stanley Research, calls the strength of the economy against Delta a cause for confidence.
Sheets commented on Morgan Stanley’s Thoughts about the market podcast “we don’t think we have enough evidence of this option to change our base economic forecast to change this optimistic view of growth”.
Hinting at the Delta option, Sheets said: “And you know, if you step back and think about this year, the market was still good, profitability was still growing, there was a lot of movement in the market, which is very much in line with better economic growth if you take year in general, although you had this option, but it made some turns in this direction.
Lots of unanswered questions
Little is known about Omicron. Scientists say it will take weeks, even months, to find out if this new strain will be worse than Delta.
What is known still puzzles researchers. Omicron has 50 mutations in its gnome. That’s 20 more than Delta.
“Everyone is afraid that the omicron will be much more passable than the delta. At first glance, it seems like it could be, ”said Dr. Jeremy Luban, a virologist at the University of Massachusetts School of Medicine. “But it may be completely wrong. Right now, no one knows. The problem is that our data is very limited. “
Job market for robots
For decades, the United States has created stunning jobs that provide no implementation, opportunities for advancement, and hope for a bright future.
It took a global pandemic to turn this bleak economic picture upside down.
Today, there are more low-paying jobs than people to take them. As a result, some employers fill them with something other than people.
The waiters are singing
American Robotech manufactures robots that transport materials for business. Their “standalone servers” deliver food to restaurant tables.
Espartak Borg, owner of La Duni Latin Cafe, Dallas, Texas, rents HolaBot American Robotech for his restaurant.
Restaurant staff don’t think robots are pushing people out, Borg told CNN: “Nobody wants to work in hospitality.”
“They see them as part of a service experience,” Borga said, “because these robots have an identity, they can interact. When you touch them, they giggle and tell you something. This is unlike human employees who respond to such behavior by resigning and telling you things through their attorneys.
They can also sing “Happy Birthday” (talk about hard work).
Changing the future of work
The robot population is expected to reach five million by 2025, according to a new Bank of America report called Robo Sapiens: The Primer of the Future of Work.
This can evoke the vision of Arnold Schwarzenegger, who tells you to say “Hasta la vista” of his work. However, you have nothing to worry about, says BofA.
“The World Economic Forum estimates that even if technology eliminates 85 million jobs by 2025, it will create 97 million new ones,” said Chaim Israel, head of global thematic investment research at BofA. “This is a net increase of 12 million jobs worldwide. ”
It will not be easy
According to BofA, about a billion people worldwide need to learn new skills to take jobs created by robot technology. However, greater flexibility and leisure are expected to be hallmarks of future employment.
Investment opportunities are also there, the report said. Companies that support job transformation are expected to receive more than $ 14 million in market capitalization.
Your future work
According to the report, technical skills will soon be in demand like never before.
“There will be unprecedented changes in the world of work ahead of the decade as technological failures pick up,” said Felix Tran, a capital strategist at BofA Global Research and co-author of the report.
As a result, the 40-hour work week may be shortened.
“If automation helps free workers from routine and repetitive tasks,” says Tran, “the future of work may lean toward more leisure.”
DAO is a new way of doing business
A group of people, many unknown to each other, decided to pool resources and start buying digital art in June. Their first purchase was the Doge NFT (irreplaceable token) meme, which inspired the creation of Dogecoin. The price tag was $ 4 million.
Since then, the same band, PleasrDAO, has made additional purchases, such as the only Wu-Tang Clan record One day in Shaolin. That October purchase cost another $ 4 million.
What is DOA
What makes these purchases unique is that they were made by DAO (Decentralized Autonomous Organization).
DAOs are groups of individuals who create over the Internet for a common purpose (such as purchasing collectibles). In this regard, DAO operates as a limited liability company (Limited Liability Company). However, unlike an LLC or any traditional corporate structure, DAOs do not have a management hierarchy. They are governed by rules embedded in the form of a transparent computer program controlled by members.
All DAO rules and financial transactions take place on the blockchain. All participants must vote for policy changes and transactions.
Versatility of DAO
Each DAO has unique goals. However, many of them were created as part of a broad effort to democratize finances. For example, in September PleasrDAO began selling fractional stakes in Dodge NFT for $ 1. You can shop on the Fractional.art platform.
Many futurists see that DAO co-exist or replace traditional investor models when we head to the Metasworld.
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Max K. Erkiletyan started writing for newspapers in high school. He later became an award-winning journalist and co-founder of Free Bird magazine.
He has written for a wide range of regional and national publications, as well as for many online publications. This gave him the opportunity to interview a variety of famous figures, from former Federal Reserve Chairman Paul Walker to blues musicians Maddie Waters and Bee King.
Max lives in Springfield, Missouri, with his wife Karen and two cats. Spend as much time as possible with your children, grandchildren, great-grandchildren.