A Stock Trader’s Guide to a World Where Oil Costs $100 or More
- Rising energy costs exacerbate inflation, pressure on margins
- Commodity stocks touted as haven, airlines to suffer again
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The inflation challenge is at the top of investors’ minds after Russia’s invasion of Ukraine caused oil prices to spike above $100 a barrel, adding to a flurry of red flags that equities were already grappling with.
“An oil rise is a major source of inflationary risk at a time of already-hot global inflation,” said strategists including Chief Investment Officer Vincent Mortier at Amundi, Europe’s largest asset manager. “The risk of stagflation globally is now higher,” they wrote in a note.