By: Steve Smith
The S&P 500 Index surged 29% in 2019 and started 2020 with an additional 1% rally that propelled it to new all-time highs. Investors were seeing nothing but clear sailing with an accommodative Fed and apparent progress with China trade deal.
Then came the missile strike killing Iran’s top general which seemed like it would certainly be a good reason for a pullback. Now even with a looming retaliation which could potentially lead to an all-out war, the market is less than one half of a percentage point off the high. To paraphrase Crocodile Dundee, “that’s not a correction!”
No-one can pretend to know how this will play out but it seems investors are shrugging off the current situation on the fact that during past geopolitical issues, from both Iraqi invasions to the North Korea missile launches, the stock market tends to work through anything that is non-financial or directly impacts the economy.
That said, this… Continue reading at StockNews.com