How would the Markets react to an Israeli strike on Iran?

Quote from mahram:

I was wondering how the stockmarket and others would react if isreal made an surprise attack on iran's nuclear facilities?


that would mark new independence day in the US. markets would rally big time knowing we get an extra day off the following year.
 
Quote from dgabriel:

This I doubt because the Iranian "leader" is a figurehead placed by the Mullahs.

He is a loose cannon by design.

Iran is playing the nuclear card because the US is right next door and sunni Iraq is a bitter historical enemy. Remember, Iran lost a million men in the Iraq-Iran war in the 1980s. That's a big number given thier population of 60 million.

And now France is falling in line. Chirac said if you force us, we will indeed use nukes. That is a message to not just Iran, but rogue actors in the Muslim world, and Islamist militancy.

Iran knows the US won't tolerate it going nuclear. They will leverage the nuclear card to gain security and in the end, negotiate themselves out of it.

If not, the US, not Israel, will take out thier nuclear facitlities. They know this. They know Bush & Co. doesn't fuck around. Not only has this current administration demonstrated a willingness to act unilaterally, it has a leader which speaks fundamentalism. "God has commanded me blah blah blah"

Those Mullahs will be taken out and Iran will return to a secular government.

Iran is the most pro western country in the mid east. The people are growning weary of the Mullahs.

The weaker a country's government is, the more brutal it is in dealing with its own people.

Iran is close to collaspe, it just needs a push.

John
 
Quote from dgabriel:

This I doubt because the Iranian "leader" is a figurehead placed by the Mullahs.

He is a loose cannon by design.

Iran is playing the nuclear card because the US is right next door and sunni Iraq is a bitter historical enemy. Remember, Iran lost a million men in the Iraq-Iran war in the 1980s. That's a big number given thier population of 60 million.

And now France is falling in line. Chirac said if you force us, we will indeed use nukes. That is a message to not just Iran, but rogue actors in the Muslim world, and Islamist militancy.

Iran knows the US won't tolerate it going nuclear. They will leverage the nuclear card to gain security and in the end, negotiate themselves out of it.

If not, the US, not Israel, will take out thier nuclear facitlities. They know this. They know Bush & Co. doesn't fuck around. Not only has this current administration demonstrated a willingness to act unilaterally, it has a leader which speaks fundamentalism. "God has commanded me blah blah blah"

Pardon me but I have never heard Bush say God told him to do anything. Perhaps I misunderstood what you meant and were referring to the Iranian leader.


French leaders are taking bribes from Iran just like from Iraq. They are talking tough but in the end they will back out and try to blame America for it. How do I know this?? The French are predictable and have no honour.

France is going down the tubes and can not be counted on. In the end they will do what they feel with help their own skin the most and that means giving in as usuaually. Just like they did to the Nazi's.

John
 
Quote from plugger:

I wonder if the Iraqi reserves are as large as initially thought. A news story on Friday stated that Kuwait's reserves are half of what they officially announced. Kuwait has been producing from oil deposits which are common to Kuwait and Iraq (they sit under both countries). It was one of Saddam's grievances and reasons for invading Kuwait. Just some food for thought.
Well, it’s not just Kuwait. They all suddenly doubled their reserve figures in the late 80s because of OPEC exporting based on reserve quotas. So Venezuela and Iran’s figures are inflated as well. The relative difference in reserves between nations is probably more accurate than the actual numbers themselves.

Still, if Iraq has a third of what Saddam quoted, it can allow Western powers time to evolve their energy policies away from the dependency on Islamist and Communist regimes.
 
Quote from mahram:

But lets say if it does happen isreal attacks. Then would equities markets in general be a sell or a buy?
Perhaps there would be a general selloff followed by a rally in the equities indexes, like what happened after the London bombings. During the rally, there would be a rotation toward companies that are perceived to profit from this event. The magnitude and ratio of the selloff/rally may depend on where the S&P is at the time.

While the events are terrible and people and nations are hurt, it has little to do with the fundamentals of listed companies and usually does not change the soundness of global economies.
 
The only logic for attack on Iran is that now AlQueda is pretty much broken and crushed, if not finished, so US might want to get rid of mullahs in Iran also if mere bombing campaigns on nuke labs can do so. I doubt that however, such attacks only weaken the general population and strengthen the despots in power. To halt Iran on its tracks is another logic, be it 2 or 6 years from the bomb technology.
 
Quote from jficquette:

Pardon me but I have never heard Bush say God told him to do anything. Perhaps I misunderstood what you meant and were referring to the Iranian leader.

John

No, you didn't misunderstand me at all. Bush has made it clear that he is driven by religious convictions and he has made statements to the effect, that his actions are sanctioned by God. And it is by design he has spoken this way, to signal to the Islamic fascists that he is an implacable foe.

And no, I have neither the time nor the inclination to dig up such statments and provide them for your pleasure.
 
Sell the rumor, buy the fact.

Short S&P & buy bonds, then rotate into oil/energy & commodity producers, short transports, consumer discretionaries. As oil price rises, mideast wealth likely to buy more XAU, so bullish for metals.
 
Why wait until then to buy gold. Both gold and oil are going to be up drastically this week. Buy gold and oil ASAP. It is a slam dunk.
 
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