The stock market has risen over the last year, helping to break the 36,000 barrier.
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The S&P 500 is down almost 5% since the Omicron coronaviruses variant was identified.
According to JP Morgan, investors should buy the dip because Omicron might help end the epidemic.
"Omicron could be a catalyst for rotation from growth to value, selloff in COVID and lockdown beneficiaries and rally in reopening themes."
The stock market decline is a buy able dip for investors according to a Wednesday note from a JP Morgan analyst.
With the S&P 500 down almost 5% from its recent high, investors are looking for clarity as to how transmissible and deadly the new COVID-19 variant is, and whether current vaccinations will protect against the disease.
Some on Wall Street have been highlighting worst-case Omicron scenarios, but the current data shouldn't alarm you.
South African cases are close to the average, and COVID deaths are close to the bottom, which is a good situation compared to the past two years.
Many are concerned about an overreaction from governments, with travel restrictions the biggest concern, because investors seem to be coming around to the idea that the Omicron variant may not be as big of a threat as originally thought.
African countries that don't have Omicron aren't restricted from flying to European countries that do.
If Omicron is found to be a less lethal strain, it could prove to be a positive risk for markets. If the new variant crowds out the more deadly ones, it could cause the end of the Pandemic sooner than expected.
"That development would fit with the pattern of previous respiratory virus pandemics, given the broad availability of vaccines and new therapeutic that are expected to work on all known variant," said Kolanovic.
That scenario would represent a buyable dip in the stock market for investors, especially in the case of a reopening of the economy, and in the case of stay-at- home growth stocks.
The recent selloff in these segments is an opportunity to buy the dip in cyclicals, commodities and reopening themes, and to position for higher bond yields and steepening.
Business Insider has an original article.
