The U.S. remains at war with Iran, and the Strait of Hormuz is still closed. But in spite of the ongoing conflict, major stock indices have been hovering near record levels recently, with new highs set just last week.
That is to say, markets seem to be content despite the threat of a macroeconomic crisis.
However, according to Bloomberg Markets editor and columnist John Authers, it might be possible to make sense of the contradiction by looking to the past. Authers joined “Marketplace” host Kai Ryssdal to talk about how financial markets have weathered major conflicts in history, and how we can use that information to understand the moment we’re in.
Listen in the player above to hear their conversation.