It seems that the global economy has been in a continuous state of flux this year. The headlines are repetitive to the point of being preposterous. This uncertainty has translated into high volatility that sent the fear gauge, VIX, to a 150-day high last month. It still remains elevated (albeit down from its recent peak), with most analysts seeming to fall into one of two camps. The first is worried about recession-induced demand destruction, while the second frets over the loss of supply. While both narratives have merit, in the short term it is demand destruction rather than a supply crunch that markets will have to deal with.
