A World Of Hurt

Stagflation is spreading globally as the closure of the Strait of Hormuz stymies trade, slows economies, and exacerbates inflation. Toby points out that stagflationary macroeconomic environments don’t necessarily hobble a country’s stock market (Japan is a case in point) if companies can grow profit margins nonetheless. … Also: William discusses how the Fed’s likely pivot toward tightening and the prospect of a stronger US dollar cause problems for emerging market economies. … And: Germany’s economy, the economic engine of Europe, is sputtering as it slides into stagflation. As Germany goes, so goes Europe, and a weak Europe doesn’t bode well for global economic resilience at a time of escalating geopolitical threats.