This episode of our new market wrap show Last Call breaks down the biggest market drivers right now through three distinct lenses: macro, narrative, and flows. With an oil shock driven by geopolitical conflict, rising volatility, and conflicting economic signals, the discussion focuses on what actually matters beneath the surface and how investors should think about positioning in an environment where nothing is clearly priced in.

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Jack and Matt bring together Andy Constan, Ben Hunt, Brent Kochuba, and Eric Pachman to analyze the ripple effects of higher oil prices, the “common knowledge” shift in markets, the role of options flows in driving short-term moves, and why traditional economic indicators like unemployment may be telling a misleading story.

Andy Constan Twitter
https://x.com/dampedspring

Ben Hunt Twitter
https://x.com/EpsilonTheory

Brent Kochuba Twitter
https://x.com/spotgamma

Eric Pachman Twitter
https://x.com/epachman

Topics covered:

How oil supply shocks impact GDP, inflation, and consumer spending
Why higher oil prices act as a tax on the economy and shift growth dynamics
The difference between supply shocks and demand shocks in energy markets
Why central banks may be unable to respond to an oil-driven slowdown
The “common knowledge” framework and how narratives reshape markets
Why the Strait of Hormuz has become the key global economic bottleneck
Oil exporters vs importers and how that divide is driving asset performance
Why energy equities may outperform in a prolonged geopolitical conflict
How volatility is being driven by oil prices and geopolitical risk
The relationship between VIX and oil during crisis periods
Why $100 oil could trigger a major volatility spike and equity selloff
The JP Morgan collar trade and how options positioning can pin markets
How dealer hedging flows influence short-term price action
Why markets may appear disconnected from negative news
The limits of predicting what is “priced in” during uncertain environments
Why diversification matters more when macro visibility is low
How unemployment data can mislead by excluding people leaving the workforce
The difference between unemployment rate and labor force participation
Structural decline in rural economies and the migration to urban centers
How labor force trends explain the divergence in economic experiences across the US

Timestamps:
00:00 Oil shock as a GDP tax on consumers
00:16 Strait of Hormuz as global economic chokepoint
00:29 Why $100 oil could send VIX to 50
00:39 Why unemployment rate may be misleading
01:07 What Last Call is and how the episode is structured
02:28 Macro, narrative, and flows framework for markets
03:44 How oil supply shocks impact growth and inflation
06:00 Why higher oil prices reduce discretionary spending
07:00 Oil’s impact on inflation and central bank policy
09:39 Scenario analysis for oil prices and market outcomes
12:28 Is the oil shock priced into markets?
16:00 Why oil vs assets may be mispriced
20:00 Ben Hunt on the “common knowledge” market shift
25:00 Why the Strait of Hormuz changes everything
29:00 Portfolio implications: long energy vs global equities
33:00 Brent Kochuba on oil, VIX, and market volatility linkage
36:00 Why $100 oil is the key risk threshold for equities
40:00 JP Morgan collar trade and market pinning dynamics
44:00 Why options flows can override macro narratives short term
52:00 Eric Pachman on unemployment vs labor force reality
59:00 Structural decline in labor force across US counties

The Moment Common Knowledge Changed | Last Call - With Andy Constan, Ben Hunt, Brent Kochuba and Eric Pachman

Excess Returns

The Moment Common Knowledge Changed | Last Call - With Andy Constan, Ben Hunt, Brent Kochuba and Eric Pachman