On Friday last week, the Iranian foreign minister declared the Strait of Hormuz « Completely Open” and the S&P 500 responded with a whopping weekly gain of 4.5%, convincing many that the stock market was totally irrational and crazy. How can Wall Street ride high on the coattails of a war in Iran and imposition of tariffs, which both negatively affect the supply of energy and the free flow of international trade, thereby raising inflation to new highs, while sapping disposable income, diverting consumer spending and undercutting sales of cheap industrial imports: things that nobody wants?
A Macro Market View by Hubert Marleau
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