What If Everyone Is Wrong About How The Market Is Positioned

For all the relentless turmoil involving oil, bonds, currencies, crypto, you name it, one asset class has been remarkably resilient: stocks closed less than 4% from their all time highs, seemingly impervious to the growing probability that the world is facing an inflationary supernova should the Iran war persist for more than just a few weeks, and the resulting Hormuz Strait blockade keeps pushing prices of energy commodities ever higher.

Nowhere is this more obvious than across various volatility indexes of publicly traded assets, where the average vol across assets ex-equities (treasuries, oil, credit, emerging markets) is back to Liberation Day levels, while the VIX is barely a third of where it was last April 2.