The stock market has been experiencing immense volatility, driven by growing concerns over 40-year high inflation and escalating sanctions on Russia. With strong consumer demand, this high inflationary pressure from manufacturing to distribution is raising fears of an impending recession.
Rising oil prices are another factor indicating a prospective recession. Historically, economic contractions have mostly followed oil price increases and interest rate hikes. According to co-founder of DataTrek Research, Nicholas Colas, “History shows that a 100% increase in oil prices over a year usually triggers a recession (1990, 2000, 2008). We’re not quite there yet, but we are getting closer by the day.”
