High energy costs.......prelude to a recession.https://www.barrons.com/articles/rising-oil-gas-prices-energy-stocks-51633550972
Historically, fast-rising oil prices can foretell recessions, and arguably help cause them. Oil shot higher before the dot-com bust in 2000. It also rose sharply ahead of the financial crisis, though prices kept spiking until the end of that recession, before dropping and then rising again—an imprecise signal at best. This time, there are other warning signs that the global economy is shaky. Inflation is rampant, and growth in China appears to have slowed. The International Monetary Fund has forecast the global economy will grow 6% this year and 5% next year.
Michael Arone, chief investment strategist at State Street Global Advisors’ US SPDR Business, said in an interview that higher energy prices will hurt manufacturing economies like China and Germany, which will have to pay more to power their factories. And it could affect high-consumption countries like the U.S., where people will have to shift some of their discretionary spending to pay higher gasoline prices.