Equities advanced in April, but hedges remain few and far between, as traditional risk mitigants like bonds and gold continue to show a correlation with stocks.
In the meantime, energy prices surged earlier in the conflict as the stock market declined, and while paring some gains in April, energy names have more recently been keeping up with the broader market.
It’s important to keep in mind that while energy stocks are currently providing investors with much-needed diversification, the market will likely shift when recession fears start to emerge.
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Investors have learned to look past the ongoing war in Iran and surge in energy prices. Stocks have not only recovered but have marked new highs.
