Despite the International Monetary Fund (IMF) warning of a potential global recession, Wall Street has recently achieved record highs, reflecting a significant recovery from earlier losses. The Australian sharemarket, represented by the S&P/ASX 200 index, has also seen a rebound, recovering approximately 70% of its losses since late February, when the conflict in Iran escalated. Analysts attribute Wall Street's optimism to factors such as a ceasefire in the Middle East and a belief that U.S. President Donald Trump may seek to ease tensions. However, Shane Oliver, chief economist at AMP, cautions that the Australian market's recovery is more subdued due to its reliance on fuel imports, which could negatively affect households and businesses. Stephen Miller, a market strategist at GSFM, suggests that investors may be underestimating the long-term impact of rising oil prices on inflation and growth. He notes that while Wall Street climbs amid various trends, the Australian market, primarily composed of miners and banks, may not share the same momentum. Both analysts express concern that the risks associated with geopolitical instability and inflation may not be fully accounted for in current market valuations.