Billionaire Ken Griffin Warns of Global and US Recession Amid Higher Oil Prices – Here’s His Timeline
The billionaire founder and CEO of Citadel Securities warns {that a} international and US recession is on the desk if a vital waterway for oil shipments stays closed for an prolonged time period.
In a brand new CNBC interview, Ken Griffin says oil costs will probably soar to unmanageable ranges if Iran continues its blockade on the Strait of Hormuz, the place about 20% of worldwide oil shipments go by means of.
“Sadly, we have now but to reopen the strait, and that’s going to take a time period that’s simply very laborious to estimate or to find out. The upshot, if the strait stays closed for one more six, 9, 12 months, power costs all over the world will go materially greater. It is going to push the world into a world recession.”
In accordance with Griffin, the US is basically insulated from oil value shocks as a result of it’s a internet oil exporter. However he warns {that a} international recession will in the end damage the US economic system.
“So we find yourself in a world recession. Clearly, that’s going to hit US progress prospects and should push the US right into a recession. However of all of the nations on this planet, we could have one of many biggest tales of resilience.”
However for now, Griffin says the US inventory market seems to be overlooking geopolitical considerations as buyers give attention to a robust earnings season.
“Look, the inventory market’s trying on the unbelievable earnings success that American firms have loved. One other nice earnings interval up to now. American companies throughout just about each sector placing up report earnings. The inventory market’s very centered on the here-and-now success story being written throughout American corporations.”
As of Thursday’s shut, the S&P 500 is buying and selling at an all-time excessive of seven,337.
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