New strain: Bullish or Bearish?

Since the first new strain emerged we have heard doctors say, that the more cases we will have the higher is the likelihood of new strains emerging. I am not a doctor or epidemiologist so I'm not going to discuss the effect of this new strain for us from a health standpoint, however, I think there is an interesting shift in rhetorics from good old J. Powell the initial stance was that inflation doesn't matter anymore which was replaced by inflation is transitory and now it seems to be not so temporary.

In the latest speech J.Powell said that a new variant of the virus will likely cause inflation to dissipate slower than previously expected, likely the second quarter of 2022, so what does that mean for the markets? I think this means, that FED has the potential to stay a little bit more dovish for a little while longer. If it will happen we will see, I think there are going to be a few stressful events near the year-end and we might see a peak inflation a lot higher than what it is now. However for now it seems like FED has our back and the reasonable thing to do is to stay invested.

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