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Dario Perkins outlines three main risks that could undermine the market's ability to look past the current crisis. He states that if the underlying conflict cannot be resolved, the U.S. economy enters a recession, or central banks respond with an aggressive rate-hiking cycle, market confidence could falter.
Perkins emphasizes that these factors would challenge current assumptions about the markets' resilience in the face of crisis.
Perkins has previously noted that a downturn in the U.S. economy could unfold more quickly than in other advanced economies, citing labor hoarding concerns in a recent analysis. He has also examined the effects of higher oil prices, identifying short-term inflation and income pressures but a limited lasting impact on growth in a separate report. These earlier observations add context to his current focus on risks to market stability.