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A sharp rise in oil prices has often preceded significant drawdowns in equities, according to Jurrien Timmer. Historical examples include immediate market reactions in 1973, 1979, and 1990, while similar patterns took more time to materialize in 2008 and 2022.
Timmer's analysis suggests that oil price volatility can be a key driver in equity market performance, impacting investor sentiment and triggering market corrections at varying speeds.