We are currently navigating a world fraught with multiple military conflicts, including the largest in Europe since World War II. JPMorgan CEO Jamie Dimon believes that too much attention is being given to the soft landing-hard landing debate, warning that geopolitical tensions are the real threat. In his view, these tensions could shape the free and democratic world for the next 100 years.
Just when you thought the world could not get more chaotic, the Middle East is teetering on the edge of all-out war. Iran’s unexpected missile strike on Israel cranked up the tension, coming right after Israel’s ground offensive in southern Lebanon.
As you would expect, stocks decided they could not handle the stress, and safe havens like the US dollar and gold shot up, with oil prices making a dramatic entrance past USD71 per barrel. With oil prices on the rise, it will not be long before some business operators start telling their customers, “Brace yourselves, our prices are going up too, thanks to the oil gods.”

Geopolitical tensions and natural disasters have a tendency to spike volatility, and if oil prices double from here, market sentiment could take a serious hit. While some investors may increase their exposure to the energy sector as a hedge against further escalation in the Middle East, I prefer a different route.
So, what is going to happen tomorrow? For those constantly worrying that the world is about to end, do not stress too much, there is always a bull market somewhere, no matter how many geopolitical conflicts are brewing.