Investors are looking back at 2022 for clues on how the risk from the Iran war unfolds across equity markets.
The key concern: an inflation shock that lifts correlations within stock indexes and spurs an extended period of higher volatility.
The spike in oil and natural gas is rippling through supply chains, threatening to raise prices not just for gasoline but for a wide range of goods and services. That’s shifted traders’ attention away from single stocks, as macroeconomic worries begin to outweigh more granular themes such as artificial intelligence. This, in turn, has narrowed the volatility premium for individual ...