What Are The Biggest Market Dislocations

This report examines current market dislocations, noting that while risk assets like equities and credit have returned to pre-conflict levels, rates markets continue to price in a hawkish Fed. This inconsistency leaves markets vulnerable to adjustment if economic growth fails to exceed expectations.

Key Takeaways

• 1.Rates markets are pricing in lasting geopolitical effects, while oil, credit, and equity markets have normalized.
• 2.Financial conditions are at their most accommodative in a decade, contradicting market pricing of a hawkish Fed cycle.
• 3.Gold has underperformed in 2026 due to higher real yields, despite favorable catalysts like inflation and geopolitical risk.

Table of Contents

• What are the biggest market dislocations?
• So what are some of the biggest market dislocations right now?
• Conclusion: A growth surge could reconcile these dislocations, but otherwise one asset class has to move
• Appendix 1

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