Q: The market is proving pretty resilient given the turmoil around the Iran war and the global impact to Oil markets and economies.
However, there are several additional underlying challenges already being experienced in the markets, like Govt Debt, fear of Inflation and increasing Interest Rates, bad credit, and so on…
I know this is a difficult question, but given the global disruption of the Iran War plus the current market concerns, do you feel that the recent minor pullback in the markets could soon expand into a correction of 10 to 20%??
The market seems to be on a knife’s edge right now and depending on the days headlines could change very quickly.
Thanks
Tim
However, there are several additional underlying challenges already being experienced in the markets, like Govt Debt, fear of Inflation and increasing Interest Rates, bad credit, and so on…
I know this is a difficult question, but given the global disruption of the Iran War plus the current market concerns, do you feel that the recent minor pullback in the markets could soon expand into a correction of 10 to 20%??
The market seems to be on a knife’s edge right now and depending on the days headlines could change very quickly.
Thanks
Tim
5i Research Answer:
It was brief, but markets did have a 10% correction already. While the Iran situation is still a bit of a mess, the trend is in the right direction and we think that will be enough to keep markets calm. Things might 'trade' sideways in the abscence of continued progress but as long as prgress remains, we think the markets will look through some of the potential shorter-term impacts from higher oil prices. As always though, the longer the system remains under stress, the more potential there is for something to 'break'.