Running Out of Memory Not Oil

The report argues that the critical market constraint is a lack of memory (DRAM) rather than oil, as evidenced by SK Hynix's outperformance relative to oil futures. It also highlights rising global inflation risks as China pivots toward reflation and supply shocks collide with fiscal deficits.

Key Takeaways

• 1.Memory (DRAM) scarcity is currently a more significant driver of equity market resilience than oil inventory concerns.
• 2.The US and Iran are in a geopolitical stalemate with neither side willing to re-escalate, keeping the US economy impervious to recent oil shocks.
• 3.China's shift from deflation to reflation is colliding with global supply shocks, creating significant inflationary pressure.

Table of Contents

• Running Out
• Oil
• China
• Inflation
• UK
• Semis
• Risk
• Additional Disclaimers
• Not a Municipal Advisor
• Legal Entities Disseminating this Material

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