Here's an initial reaction in markets to the military escalation.
The table is listing the S&P 500, gold, WTI crude and the Australian stock index. That's clearly a reaction as opposed to ignoring it but stocks don't seem panicked at this point. Obviously there is no way to know whether it needs to get worse before it gets better.
Chances are defense contractors will do well from this. I did some digging and there is a good chance that managed futures is long crude oil, it is long gold and silver but again we'll see.
Similar to 2022 and the Tariff Panic last April, this event has a good chance to be a good litmus test (learning opportunity) for a lot of strategies and philosophies.
If you are a student of markets in addition to being a participant, this is yet another fascinating event. If it gets bad, ok, we've had bad before. We know bad ends and eventually the market goes back up. Maybe that happens quickly or maybe it takes longer than we'd like but that is just how it works so there is no need to panic, only the need to endure (if it is bad) and learn for the next one.
The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.
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