A general, Qassem Soleimani, who was the head of Iran’s Quds Force, was killed by a U.S. drone in Baghdad, Iraq on Friday.
The death of Gen. Qassem Soleimani was viewed by some as an assassination, owing to his power and influence in Iran and among proxy militias in the Middle East… You may be surprised to hear that Soleimani’s death may not be as significant for stock market investors as it seems…
The economy has changed. It is less reliant on oil. Yes, if the price of oil rises, it will negatively affect certain sectors such as airlines as well as retailers that cater to lower-income consumers. The U.S. became the world’s largest oil producer in mid-2018, while Iran’s energy industry has been hurt by crippling sanctions.
Compare the market cap of Apple to the oil sector. You will be surprised how big Apple has become and how small the oil sector has become.
Historically, the impact of such incidents has been short-lived…
MacDailyNews Take: As we wrote earlier this morning, “Some short-term volatility is, of course, to be expected,” but keep in mind that:
People tend to fear the worst. It almost never happens. – MacDailyNews, May 14, 2019