- Markets are already shaky; rising energy prices could make this correction even worse.
- Soaring oil prices could further exaggerate supply chain crunches, with rising costs putting pressure on manufacturers, leading to cost-push inflation.
- Although this problem does not pose an immediate threat for markets, a prolonged rally, especially into a cold winter, could lead to drastic consequences.
- Expect even future core CPI inflation numbers to be high, with strained manufacturers passing on higher prices to consumers.
For further details see:
Market Correction Over? Keep An Eye On Oil Prices For Now