The conflict between Israel and Iran raises concerns about a major war; however, US indices continue to show growth. This article examines the current state of global markets in light of these events.
US Indexes Rise Amid Conflict
The NASDAQ and S&P 500 are reaching record levels, despite the escalation of the situation in the Middle East. This counter-intuitive reaction is explained by investors' conviction that the conflict will be short-lived. Analysts suggest that diplomatic negotiations will quickly defuse the crisis, which also supports positive expectations in the markets.
Economic Impacts of War with Iran
Recent US strikes on Iranian nuclear facilities have not triggered the economic collapse that some observers feared. Iran accounts for only 3-4% of global oil production, with exports primarily to China. This geographic dependence limits the direct impact on Western markets. The American public staunchly opposes a war with Iran, compelling the administration to adopt a minimalist approach to the conflict.
Investor Psychology in Times of Uncertainty
Investors must ignore their emotions to capitalize on the emotions of others. When the crowd panics, professionals buy; when euphoria prevails, they sell. The media saturate the narrative with catastrophic news, hindering rational decision-making. Emotional detachment thus becomes a crucial tool for the accomplished investor, who focuses on facts and analyzes trends.
The coming years promise high volatility in financial markets. In the face of global instability, gold and bitcoin continue to perform as reliable assets. Emotional detachment and strategic diversification will be key factors for investors in the future.
