Edmond de Rothschild warns that markets are clinging to a soft-landing narrative while underpricing the structural risks of a prolonged energy shock and tightening financial conditions.
- Equity markets favour AI, semiconductors, and energy, while ignoring broader economic deterioration and weak end-demand sectors.
- A sharp drawdown in inventories and potential Hormuz disruption signal rising structural supply risk.
- Eurozone inflation is easing, but consumer confidence has fallen to post-Covid lows, highlighting fragility beneath the surface.
Markets are pricing stability. The report suggests the real story is the slow erosion of it.
Continue reading this article?
Register for free and get access to Investment Officer International:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
Register for free and get access to Investment Officer Luxembourg:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
