Citi discusses Covid outlook heading into H1 2022.
"Assumptions of herd immunity are increasingly challenged by breakthrough infections and recent research. We review recent real world data and scientific literature and discuss why the possibility of more potent variants cannot be ruled out," Citi notes.
"We believe that Covid risks remain real for markets going into H1 2022 but that vaccine rollout divergence remains a key differentiator for markets. We stated in our latest Covid Cheatsheet that herd immunity looks hypothetical, leaving us cognizant of virus risks and the need for some local and global repricing in markets. Our conviction has increased in recent weeks," Citi adds.