How is Iran issue going to affect stock market.
Clients are asking how is Iran issue going to affect stock market.
Nobody knows for sure but history can offer a guide.
Here’s what happened during the first Gulf War, the 1990s era conflict when the U.S. defended Kuwait against the invading Iraqis.
The conflict ran from August 1990 to February 1991. Over that span—from just before the Iraqi invasion through the end of February—the S&P 500 Index gained 3.2%. The more-concentrated Dow dropped 0.6%.
Benchmark crude-oil prices, while volatile, fell 11%. The U.S., after all, won the conflict.
Energy and industrial components of the S&P 500 dropped about 3% and 1%, respectively.
Consumer staples and utilities, relatively safe sectors of the economy, rose 14% and 2%, respectively.
So Iran issue may not be the reason for a correction in USA market.
Nobody knows for sure but history can offer a guide.
Here’s what happened during the first Gulf War, the 1990s era conflict when the U.S. defended Kuwait against the invading Iraqis.
The conflict ran from August 1990 to February 1991. Over that span—from just before the Iraqi invasion through the end of February—the S&P 500 Index gained 3.2%. The more-concentrated Dow dropped 0.6%.
Benchmark crude-oil prices, while volatile, fell 11%. The U.S., after all, won the conflict.
Energy and industrial components of the S&P 500 dropped about 3% and 1%, respectively.
Consumer staples and utilities, relatively safe sectors of the economy, rose 14% and 2%, respectively.
So Iran issue may not be the reason for a correction in USA market.
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