Money Distilled

Markets Are Forward Looking, But Not Psychic

Record stock market highs leave plenty of scope for nasty reactions to disappointments.
A house under construction at a Crest Nicholson housing estate in Maldon, UK, on Tuesday, Nov. 18, 2025. UK property surveyors painted a picture of a housing market cooling rapidly in the run-up to Labour’s November budget as fears of tax rises weigh on buyers and sellers alike.Photographer: Chris Ratcliffe/Bloomberg
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Welcome to the award-winning Money Distilled newsletter. I’m John Stepek. Every week day I look at the biggest stories in markets and economics, and explain what it all means for your money.

It’s a source of some confusion (to me, at least) that the Iran war, the de facto closure of the Strait of Hormuz, and the resulting impact on the energy market, have been greeted with general equanimity by global equity markets.