oil, semiconductors, Uber rides, AirBNB listings and many other risk-on / global growth stories are still priced as if pre-Covid-19 demand was still guaranteed.
Punters are still buying semiconductor stocks based on out-of-touch projections that are the equivalent to counting the number of fairies on the head of a pin, ignoring the fundamental reality that very few people actually a new mobile phone, vehicle, laptop, refrigerator, etc.
People pursue what they when they're brimming with confidence in the future, bolstered by an animal-spirits euphoria that their income and wealth will continue rising--a sense of certainty anchored by a belief that their economic world is essentially without risk.
When you're afraid of getting a deadly virus or losing your livelihood, status symbols and frivolous spending no longer top the agenda.
The vast majority of demand isn't for a pressing need, it's for , spending intended to make the buyer larger than they really are, in their own self-image and in the image they present to the world in the brands they display, the cafes they dine in, etc. etc.
There's no pricing mechanism for such intangibles, of course, but should give way to a new appreciation of risk and a pervasive awareness of uncertainty, then global demand will fall off a cliff as are set aside indefinitely.
One of the games being played is whenever a reality-based measure is discovered--electricity consumption, satellite images of empty parking lots, etc.--authorities immediately limit access to the measures and/or unleash a tsunami of counter-narratives to discredit the real-world evidence that global demand is cratering.
Since oil is the master resource for the industrialized, interconnected global economy, it's tough to argue that declining consumption of oil doesn't matter.
The problem with oil and everything else that's now in over-supply / over-production is that producers can't survive either a sustained drop in price or a sustained drop in production. Since both are equally fatal, producers have every incentive to keep producing and hope that somebody else lowers their production to keep prices high.
And so excess production continues apace until price collapses.
This collapse of price will manifest in all sorts of markets that are based on debt-funded purchases of rather than a warily prudent priority on .