The Ceasefire Is Cracking — What Markets Are Missing | Prof G Markets
Scott Galloway and guests examine why markets may be underpricing risks from Middle East tensions, with oil price spikes compressing valuations even as earnings hold up.
The gist
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Markets are seeing multiple compression, not earnings collapse: tech stocks hit 2022 valuation lows despite rising earnings estimates.
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Even if the Strait of Hormuz reopens, oil traders say shipping could take months to normalize, keeping energy prices high longer than markets expect.
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Supply-driven oil inflation puts the Fed in a bind: cutting rates protects consumers but risks looking soft on inflation.
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Higher oil prices act as a regressive tax on consumers, raising stagflation risk that Galloway says markets have not fully priced in.
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Goldman Sachs
· "when Goldman came out and called for it to go to 200 back, I believe, in 2008"
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