Risk Event, Not Regime Shift: Why Markets Are Showing Resilience

Equity resilience suggests investors are treating the Middle East conflict as a risk event rather than a broader market regime shift. The key market variable is where energy prices settle, as that will determine whether the conflict feeds through to higher inflation expectations. The article implies a cautious but still stable market backdrop unless oil moves sharply higher.

Analysis

Equity resilience suggests investors are treating the Middle East conflict as a risk event rather than a broader market regime shift. The key market variable is where energy prices settle, as that will determine whether the conflict feeds through to higher inflation expectations. The article implies a cautious but still stable market backdrop unless oil moves sharply higher.