2023-10-14 03:49:00
© Investing.com
Investing.com – The Israeli army has asked the 1.1 million people living in northern Gaza to quitter immediately the territory. A sure indicator of the imminent entry of the troops responsible for annihilating Hamas.
UN Secretary General António Guterres is already talking regarding a humanitarian catastrophe, while Hezbollah and Iran report clearly they will not tolerate such an escalation.
The entire region, from which the world gets a third of its oil by sea, risks falling into chaos. Notably because geopolitics, which tips the scales, decides the extent of the suffering which will befall the inhabitants of the Middle East.
Rabobank analyst Michael Every has very well described the political vision of the Middle East, which varies according to the calculation of its own national advantages. Even in the West, opinions differ sharply.
On the one hand, there is the United States, where elections will take place next year. In this context, it is not surprising that the government claims, referring to the intelligence services, that Iran was surprised by the Hamas attack and that it was in no way the sponsor. In this way, we are trying to keep Iran away from events and not endanger the overall oil supply situation, because in the United States, elections are also decided at the pump – the less is The more expensive it is, the better it is for the government in power.
On the other side is the President of the European Commission, Ursula von der Leyen, who leaves no doubt that Iran was the driving force behind the Hamas attacks.
This is anything but a good starting position for united attitude and action. Michael Every written like this:
“Unfortunately, it is clear that in an election year, American intelligence services say everything that is politically correct, because it helps the White House to be able to say that there is no need to attack Iran, even if we support Israel. It remains to be seen what this means in terms of deterrence.”
The long telephone conversation between Saudi Crown Prince Mohammed Bin Salman and Iranian President Raisi also raises questions.
Was this already a prelude to Saudi Arabia moving away from Israel and the West to do more business in the interests of the BRICS in the future? Or was it more regarding probing whether Iran would turn its weapons once morest Saudi Arabia if the United States dared to bomb Iran?
The challenges facing the global economy just ten days ago were immense. Certainly, American interest rates had already been higher, but never had the debt service been so important, while China is hit by an unprecedented real estate crisis, a gas pipeline has once once more been sabotaged and that the end of the Ukrainian conflict is not in sight.
The Middle East conflict that is flaring up today has the potential to spiral the situation completely out of control, so it is almost certain that financial markets are in for a very turbulent period.
For years, things were like on an escalator, always up. But at the end of this comfortable journey, it is by no means paradise that awaits, but a huge chasm that will swallow up in a few moments all the profits made in recent years, when the inevitable free fall occurs. On the QTR Fringe Finance investment blog, we can read what suit :
“The U.S. economy, housing market, commercial real estate market, and stock market are still in the bubble zone, near their all-time highs, and have not yet experienced a significant decline , which I believe is a mathematical necessity given current interest rates.
I’m perplexed that people continue to act in their personal and financial planning as if the world isn’t on the cusp of dramatic change. I certainly hope for a return to normal, but the conditions of profound and volatile change seem more tangible than ever in my investment career.”
Those who invest in the financial markets should therefore urgently ask themselves whether their current strategy is really suited to world events and act accordingly. Because whoever fails to jump off the escalator in time will be dragged into the abyss.
1697417149
#Financial #Markets
