Buying on a War Scare 💣

Buying on a War Scare

Baghdad, Iraq. 3rd January 2020. A US drone strike kills Qasem Soleimani, Iranian Major General of the Islamic Revolutionary Guard Corps. It’s a World War 3-inducing, illegal assassination of a war criminal. 2020’s off to a flyer!

The price of Brent Crude rose sharply on Friday in custom with rising tensions in the Middle East. At times like this, the region’s vital oil refineries turn into strategic targets, and supply and demand fears grip investors. An oil spike of 3% sent shock waves through the airline industry, trucking business, and indeed anything running on unhedged kerosene.

However, there’s still plenty of upside out there. Investors have darted for safe havens like bonds and gold, afraid this geopolitical chaos could tip the global economy over the edge.

War-ready aerospace and defense firms climbed higher on rumors they could be called into action, and equity markets as a whole are expected to recover aptly over the medium-term (3-6 months).

Of course, every world power is now trying its very best to diffuse tensions, and stop an all-out war in the first place. Every world power except Iran and the US, it seems!

Both sides went all-caps on Twitter over the weekend in a no holds barred, hyperbole-heavy shoving match. The Iranian Information and Telecommunications minister compared President Trump to Adolf Hitler and Genghis Khan, promising “he will learn very soon that NOBODY can defeat !” The Trumpian response? To threaten 52 sacred Iranian sites with strikes “VERY HARD AND VERY FAST!” We’re not sure who to believe, here.

In practice, traditional brawn and brute strength might not win either side a conflict in this day and age. Coalitions of unknown allies on unknown sides could anonymously wreak havoc through cyber warfare or online disinformation campaigns. The odds are growing of an antiballistic ‘Operation Unthinkable,’ a weaponized ‘Disease X’ pandemic  like Bill Gates warned, and of course, a Thermonuclear button press. Every investor is hoping Trump hasn’t already hit the iceberg here. But it’s Iran’s move!

Share:

More Posts

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.