Israel, Iran and Shares
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Not wanting to re-start the long running discussion about the rights and wrongs of the situation but it seems that our bearded friends in Iran have lobbed some missiles at Israel. Which has had a bit of a damaging effect on share prices.
Can anyone give me a very short precis on the effects of War on share prices? And any very rough predictions about what will happen next, financially?
Small words please, 'cos I iz well fik.
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Wars are generally good for equities.
Who knows if that runs true?
Russia Ukraine hasn't kicked the arse out of the market, Israeli middle East so far hasn't kicked the arse out of things. Chinese rattling the sabre against Taiwan, not much effect.
So hold firm, don't worry be happy, I have 20% ready to capitalise on any substantial fall, just in case
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Generally a knee jerk reaction and many assets are connected. You will see some sell equity and buy gold. Sell equity and buy oil futures. These events tend to calm down quite quickly because fundamentally, large caps in the US tend not to do much business in the ME unless you are Northrop, Lockheed, RTX, Raytheon. Will Apple sell fewer phones or Colgate less toothpaste. No is the answer.
Difficult to say but I doubt Iran want a full on war, giving the US an excuse to destroy their uranium program and the truth is there has been serious fighting in the rejoin for 50 years and prior to that, millennia?
Regards
Adam
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Invest in arms suppliers!
My late great uncle John was a partner in a Bradford wool mill, bought in the 1930's.....did very well selling karki and airforce blue cloth to the gubberment 1939/1945!