PNC Financial has thrown cold water on fourth-quarter rallies.

Amanda Agati Chief Investment Officer says Covid omicron fear will impact risk appetites for the next two weeks.

CNBC’s She stated that “we’ve already gotten Santa rally,” and she added, “Trading Nation” Monday. We’re experiencing a bit of investor fatigue.”

These are the major indexes kicked off the week in the red. The S&P 500It has fallen 3% over three days. The index is on its worst three day slide since September.

The tech-heavy meanwhile NasdaqThe same span saw a drop of almost 4%.

She said that in addition to negative headlines and omicron concerns, she believes investors have already locked in their gains and are ready for Christmas vacation.

She doesn’t think there is a bigger problem.

Agati said that “we don’t believe this will lead to a significant correction in the market,” adding that liquidity was quite low at this time.

Agati’s optimism is based on the possibility that omicron has fewer severe side effects than other Covid-19 strains. The longer-term forecast for 2022, released Monday, assumes that omicron will not cause more severe repercussions than previous Covid-19 strains.

Her base case, despite Covid being her wildcard top spot, is 2022. a strong year for the market. She believes that one of the biggest losers this year will rebound.

“EM [emerging markets]It is well-positioned but has been severely punished by regulatory overhangs. The thing that I expect to be most interesting about 2022 will be the appearance of some of this… China regulatory backdrop fadeAgati stated that she agreed. That would be the boost emerging markets require to perform in 2022.

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