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EPISODE 10 | Calm Surface, Cracks Beneath: Oil Shocks, Credit Risk & AI Disruption
Apr. 10, 2026 In this episode, the team unpacks a market that appears calm on the surface but is highly volatile underneath. While the S&P 500 sits roughly flat on the year, geopolitical shocks—particularly the Iran conflict—have driven sharp moves in oil and injected a strong short-term inflation impulse. At the same time, those pressures are colliding with longer-term disinflationary trends like cooling housing data and slowing wage growth, creating a complex and uncertain macro backdrop. The discussion then turns to growing risks in credit markets, where the rise of private credit and direct lending has introduced potential fragility. Deteriorating underwriting standards, liquidity constraints, and rising redemption pressures are raising concerns about hidden losses, with banks indirectly exposed and vulnerable to volatility driven by uncertainty rather than realized credit events. Software equities are a key pressure point, as rapid advances in AI—especially from players like Anthropic—are disrupting the industry’s economics. With the marginal cost of code collapsing, traditional business models are being challenged, raising the possibility of decentralized software development, compressed valuations, and long-term structural disruption across the sector.
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