Geopolitical Risk Is Crashing Equities

When will this end?

Geopolitical Risk Is Crashing Equities

It is quite ironic that Trump is crashing the stock market for the second time at functionally the same time he did last year, but this time into midterms with crude as the catalyst instead of tariffs.

We are seeing crude prices now drag up the VIX and cause bear steepening in the curve as there is a marginal inflationary impulse:

VIX futures are now sitting at the same level they were at when we were at a 20%+ drawdown last year:

Here is the key factor to understand to frame the next move.