With oil prices easing, money first goes back to big tech, gold, and BTC.
Don’t rush to interpret this as a full-on risk-on.
After the risk premium for the Strait of Hormuz comes down, the first thing capital usually does is buy the assets that are easiest to trade and best able to absorb large volumes.
After that, it mostly comes down to two things: whether oil prices push back up again; and whether internal differentiation in AI will keep widening.
Don’t rush to interpret this as a full-on risk-on.
After the risk premium for the Strait of Hormuz comes down, the first thing capital usually does is buy the assets that are easiest to trade and best able to absorb large volumes.
After that, it mostly comes down to two things: whether oil prices push back up again; and whether internal differentiation in AI will keep widening.