It was a “lively” coffee session with my team today. The meeting had a dynamic start, with the team members representing diverse backgrounds and expertise engaged in discussion and exchanging ideas on various investment strategies. The session was not just a platform for sharing information but also an opportunity for relationship-building. The call lasted for an hour.
The single biggest question for some investors now must be whether the new war will escalate from here. So far, the damage of the Middle Eastern crisis on Wall Street has been limited. The historical evidence shows that the market can recover from most geopolitical events quite well.
We all know that the market can climb a wall of worry. In other words, the worse the news gets, the greater the pessimism that ensues and the higher the markets want to climb. Seasonally speaking, risk assets tend to do much better over the weeks ahead.
Stocks are breaking down (again) but the sell-off is expected. Bonds are getting trashed. Emerging market debt based local currencies have also been hit as part of the collateral damage. Oil prices and precious metals have risen sharply because of the war. The greenback remains strong. Grab more coffee and grumble what you want. Let the markets come to you.
