r/stocks
Iran war and Super El nino low rates scenario
Explores if super El Nino and Iran war causing oil spikes could trigger an economic shock forcing central banks to cut rates.
Okay, so what's the take on a super el nino and an extended Iran war conflict causing a scenario in which central banks will have to lower rates?
It seems very plausible that the economic pain caused by higher oil prices and then a compounding effect of an el nino while it would increase prices massively could cause the central banks to lower rates due to the economic shock these could create.
I'm not an economic historian but it sounds like a similar scenario occured in the 1970s.
Keen to hear people's opinions or if I'm just deluded.
Sorry -- we removed your post or comment because it's low effort. Please put effort into what you post to r/stocks. Any of the following are considered low effort and will result in your post or comment being removed:
- Posts or comments that rely on memes to get your point across
- Posts or comments which are basic one/two sentence questions
- Posts or comments that are similar to ones made several times recently
- Posts or comments where no actual research was done before asking the question or starting the discussion
- Use of gen ai/chatgpt for comments or posts
If you need more information on a stock, try looking it up on finviz.com or a business news website. After that, come back and back up your statements with a source or provide a more in-depth question.
A full explanation of all /r/stocks rules can be found here: https://www.reddit.com/r/stocks/wiki/rules
Rates will rise in an attempt to tamp down inflation.
Rates more likely to go up as risk elevates
Or stays the same. At least until after they have better numbers estimate of economic decay.
They already have the numbers and know the oil supply destruction is going to make it worse. Labor is resilient therefore inflation the main problem needing to be solved as far as the Fed is concerned and bond market might operate on their own if Fed lags in responding to mounting inflation
Seems more like a del taco scenario.... Stop being delusional and get some food.
actually the 1970s was the exact opposite
Delusion
Hi, you're on r/Stocks, please make sure your post is related to stocks or the stockmarket or it will most likely get removed as being off-topic/political; feel free to edit it now and be more specific.
To everyone commenting: Please focus on how this affects the stock market or specific stocks or it will be removed as being off-topic/political.
If you're interested in just politics, see our wiki on "relevant subreddits" and post to those Reddit communities instead without linking back here, thanks!
I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/stocks) if you have any questions or concerns.