US stocks (^GSPC, ^DJI, ^IXIC) are lower in Monday trading as the market waits on the possibility of an escalation in the Middle East conflict. Conversations are beginning to emerge across Wall Street about what the potential impact of an Iranian attack on Israel would be.
Jay Woods, global strategist at Freedom Capital Markets, and Adam Johnson, portfolio manager at Bullseye American Ingenuity Fund, join Market Domination to discuss rising tensions in the Middle East, potential We discuss the implications and what investors should keep in mind going forward.
Johnson says this is what he tells his customers at times like this: “This isn’t what moves the market… It almost sounds callous to volley from the get-go. But if you go back and look at 20 places, Gulf War I, Gulf War II, Gulf War II, We look at 25 different events, geopolitical events that involve hostilities, such as the USS Cole bombing, the World Trade Center bombing, etc. When you look at these events, you typically see what happened. You can have a 7% or 8% drop in five days, and then 10 days later the market is exactly where it was.”
Mr. Woods said of the rebound seen in the market: “I think it could go down a little bit more, but I think this is a buy-worthy buy.” I know that’s the case. [typically] His outlook is a little cautious and there are some geopolitical headwinds. Goldman Sachs (GS) beat that part…we got here very quickly, but I don’t see the next catalyst other than individual pockets of revenue to lift the market, and now yields are rising again. I don’t think we’ll get that far towards 5%, which continues to rise…”
For expert insights and the latest market trends, click here to watch the full episode of Market Domination.
This post was written by Nicholas Jacobino
