Markets have absorbed an extraordinary amount of bad news without suffering an equally extraordinary decline.

The war between the United States and Iran has escalated. The Strait of Hormuz is effectively closed again. Iranian-backed Houthi forces are threatening another major energy route through the Red Sea. Brent crude moved back above US$100 per barrel during the week. Bond yields rose sharply, with Australian and UK 10-year yields moving above 5%. Tariffs returned, inflation risks broadened and the largest technology companies faced renewed questions about t...