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The stock market has a ‘binary’ feel to it, so it’s time to reduce risk

Cody Willard
·4 min read
The stock market has a ‘binary’ feel to it, so it’s time to reduce risk

The stock market has priced in a robust recovery from the COVID-19 pandemic. Just this week, the Centers for Disease Control released a travel advisory warning against all travel to Canada. In addition to the risks presented by the pandemic, I am beginning to think that something that has been previously brushed off by the market — say, inflation fears, oversupply of new issues through SPACs or an unexpected event such as a hedge fund blowing up — could trigger a market selloff in the near future.