H2O LUX INVEST – Annual Report and audited financial statements as at 31/05/2023
The Oil Shock Markets Refuse to Price
Markets may be under-pricing the oil shock’s macro impact. Investors are dismissing both duration and non-linearity: the longer oil prices stay elevated, the greater the cumulative drag on growth, while shocks become disproportionately more disruptive at higher price levels, with moves above $100 carrying materially larger macroeconomic consequences.
