As we all know, the US and Israeli militaries attacked Iran. The old Ayatollah and his successor are dead, along with much of the rest of Iran’s political and military leadership. How should investors respond?
First, in overnight trading oil prices were up over 8%. US stock price indices are also down. And in a flight to safety, 10-year Treasury bond yields fell under 4%. When the US invaded Iraq in March 2003, the stock market rose sharply and nearly doubled between then and the peak in 2007.
But that stock market was undervalued after the dot.com crash of 2000-2003. Today, the market is over-valued. History may rhyme, but it doesn’t repeat. War is uncertain, and while the US and Israel are dominating, investors would be foolish to assume they know every twist and turn to come. Even here at home, where threats exist.
So we would like to turn our attention to what seems like a seismic shift in the direction of threats to Western Civilization. Not long ago, during COVID, Klaus Schwab and the World Economic Forum published a book titled “COVID-19: The Great Reset.” Politicians around the world, including Boris Johnson, Angela Merkel, Joe Biden, Kamala Harris, and others talked about “Building Back Better,” which was a euphemism for The Great Reset. The platform included Green Energy and the Paris Agreement, Open Borders, Global Taxes, International Cooperation, and Sustainable Development. While a generalization…it seems clear the supporters of Build Back Better wanted even more government spending and more bureaucratic control.
