Dan Nathan and Peter Boockvar discuss why equities have been slow to react to a widening Middle East conflict even as oil and other commodities jump, arguing markets often assume geopolitical shocks fade until prolonged damage forces a delayed repricing. They note a sharp global rise in rates—U.S. 10-year near 4.4% and record highs in UK/European yields—as central banks shift from expected cuts to potential hikes due to inflation spillovers from energy. Boockvar warns higher yields (4.5% then 5% as key levels) can pressure equities, private credit (lower-quality, floating-rate borrowers), housing and real estate, and upper-income spending, raising recession risk if oil stays near $120. He highlights weakening AI/mega-cap leadership, cites rising private-credit defaults, and frames gold’s volatile pullback as post-parabolic consolidation amid a stronger dollar and higher real rates, while staying bullish longer term on sovereign-debt risks.

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