Markets in Denial: The Strait of Hormuz Disruption and the Great Rally The recent news that Goldman Sachs attributes the resilience of global equity markets to robust corporate profitability, despite the ongoing disruption at the Strait of Hormuz and concerns about stagflation, raises more questions than it answers.
Investors are left wondering if they're ignoring warning signs or caught in a bubble.
The numbers tell a story of concentration: The S&P 500 has advanced roughly 10% year to date, with technology, media, and telecommunications stocks accounting for approximately 85% of the index's overall gains.