Confirms people were defensively positioned, leading to covering of positions globally, especially in energy-importing regions like Europe and EM. Focus will shift to central banks' ability to resume cutting cycles as oil price pressure eases.

For example, the ECB many had started to assume in price in rate hikes on the back of the inflation that we would have seen if that oil price stayed above a hundred for a long period of time.

Expects a resumption of the diversification and broadening thematic, not just geographically but down the market cap spectrum (e.g., Russell). Also highlights the ongoing debate around AI trade disruption versus traditional sectors. Maintains a 7700 S&P target, cautious not to downgrade hastily due to the conflict.

I think there'll be a lot of people assuming that you get a resumption of that thematic because of this broader diversification theme.