By Naomi Rovnick
LONDON, June 9 (Reuters) - Tumult on world markets in the past week shows the economic outlook is now on a knife edge, investors said, with equal odds of an AI boom lifting growth or oil shocks from the U.S.-Iran war pushing stocks and bonds into a tailspin.
Global equities hit an all-time peak on June 3, suffered their worst day since October two days later, and have spent this week reversing course constantly in line with U.S. President Donald Trump's volatile rhetoric about Iran and rapidly shifting bets about when the Strait of Hormuz shipping route might reopen.
"Most investors have been running with the **** umption that within less than three months we reach a reopening of the strait," Lombard Odier Investment Managers' head of macro and multi-asset portfolio manager Florian Ielpo said.
"If we move to expecting oil prices of $95 or more for many more months, that would be a complete change of view and a stagflation outlook," he added. "The market is walking a narrow line."
LONDON, June 9 (Reuters) - Tumult on world markets in the past week shows the economic outlook is now on a knife edge, investors said, with equal odds of an AI boom lifting growth or oil shocks from the U.S.-Iran war pushing stocks and bonds into a tailspin.
Global equities hit an all-time peak on June 3, suffered their worst day since October two days later, and have spent this week reversing course constantly in line with U.S. President Donald Trump's volatile rhetoric about Iran and rapidly shifting bets about when the Strait of Hormuz shipping route might reopen.
"Most investors have been running with the **** umption that within less than three months we reach a reopening of the strait," Lombard Odier Investment Managers' head of macro and multi-asset portfolio manager Florian Ielpo said.
"If we move to expecting oil prices of $95 or more for many more months, that would be a complete change of view and a stagflation outlook," he added. "The market is walking a narrow line."
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