Worst case scenario still not priced in, says PNC's Yung-Yu Ma

• Worst-case scenarios for the market, especially related to energy infrastructure destruction, are not heavily priced in.
• The VIX at 26 does not reflect extreme market nervousness, suggesting more risk should be priced in.
• China has significant leverage over Iran and a vested interest in Middle East stability, likely pushing for de-escalation.
• China's tech and AI innovation remains strong, but geopolitical questions can cause short-term volatility.

PNC's Yung-Yu Ma discusses the market's reaction to geopolitical tensions, particularly concerning Iran and China. He suggests that worst-case scenarios, such as significant energy infrastructure destruction, are not fully priced into the market, despite current volatility. China is seen as a potential de-escalating force in the Middle East, while its tech sector remains a key growth driver.