Shortsighted stock market can no longer brush off war: ‘It’s too hard to ignore $100 oil’
While the U.S. has conducted strikes against Iran 12 nights in a row — sending both oil prices and Treasury yields higher — domestic equities had mostly brushed off the idea of the war between the two countries heating up again, staying flat while oil jumped.
"Investors" live in the La-La land of the Ultra Rich. Remember, the investors who drive market prices aren't J6P with his IRA. They are the TBTF Banks, Hedge Funds, Sovereign Wealth Funds and Institutional Investors that control 90% of FSoA "wealth". These folks are still living inside thhe AI Bubble, convinced like Dot Com & Tulip buyers of yore that this amazing toy will perform the age old miracle of Making Something from Nothing. Ignore the P/E ratios, Ignore the Deficit, Ignore the people no longer listed as in the workforce, ignore the $25/lb Ribeye at the supermarket and follow Elon down the Yellow Brick Road and everybody will be rich beyond their wildest dreams!
TIME TO WAKE UP & SMELL THE COFFEE!
"In the short term, the elevated spike is more meaningful to the headlines than client portfolios," Tanney said. "If we have a sustained price above $120, that's the breaking point where you'll see serious trickle down effects."
No Michael, it doesn't take $120 Oil to have "trickle down" effects, we have been trickling here for months already, buffered somewhat by irrational exuberance and stockpiles of Oil just about emptied out. What you will get at sustained $120 Oil is GUSHER DOWN EFFECTS and many, many unhappy Konsumers in Amerika and Starving Children across all of Africa and South America.
If we're extremely lucky, nobody will blow off a "Nuclear Device" before the ball drops in 2027. Past that we're living on borrowed time.
RE