ย 
  • Robert Tu (R2)

What Do We Know About Intensifying ๐Ÿ†„๐Ÿ†‚-๐Ÿ…ธ๐Ÿ†๐Ÿ…ฐ๐Ÿ…ฝ Clash

Updated: Jan 9

๐Ÿ…ฆ๐Ÿ…—๐Ÿ…๐Ÿ…ฃ ๐Ÿ…—๐Ÿ…๐Ÿ…ข ๐Ÿ…—๐Ÿ…๐Ÿ…Ÿ๐Ÿ…Ÿ๐Ÿ…”๐Ÿ…๐Ÿ…”๐Ÿ…“?

A military commander, Qassem Soleimani, second to only the Iranโ€™s Supreme Leader Khamenei in power in Iran, was killed in a US airstrike at Baghdadโ€™s airport, tensions in the Middle East have been boiling as Iran promised to retaliate and Trump promised that US would response disproportionately.



Investors are left with ponders if the attack is a harbinger to another war or just one of many dramatic events that ultimately offers buy the dip opportunity for markets to head higher.


๐Ÿ…—๐Ÿ…ž๐Ÿ…ฆ ๐Ÿ…“๐Ÿ…˜๐Ÿ…“ ๐Ÿ…œ๐Ÿ…๐Ÿ…ก๐Ÿ…š๐Ÿ…”๐Ÿ…ฃ๐Ÿ…ข ๐Ÿ…ก๐Ÿ…”๐Ÿ…๐Ÿ…’๐Ÿ…ฃ?

Movements within the global equity markets have been more modest than pundits would have anticipated and remained resilient, indicating that investors seem to view that Iranโ€™s recent retaliation strikes on US Airbase are superficial, and most importantly, this period of tension will pass. At this current juncture, in my point of view, investors are still optimistic on 2 reasons:


(1) Oil Prices only climbed higher as geopolitical tension escalates, but not spiked, which is attributable of the oil market is still having spare supply from oil exporting countries.


(2) Retaliation Strikes from Iran is perfunctory and somehow expected, so as to prevent entering a war with US which would lead to disastrous consequences.


๐Ÿ…‘๐Ÿ…ค๐Ÿ…›๐Ÿ…›๐Ÿ…ข ๐Ÿ…ข๐Ÿ…—๐Ÿ…ž๐Ÿ…ค๐Ÿ…›๐Ÿ…“ ๐Ÿ…ข๐Ÿ…ฃ๐Ÿ…๐Ÿ…จ

After sealing a trade truce with China, bulls in equity markets have been charging and solid economy will help Trump to secure his 2nd term of US Presidency. Nevertheless, if tension continue to escalates, the outlook for the global economy and financial markets will be gloomy thus hurting his prospects of getting re-elected.



While we foresee that geopolitical uncertainty will likely persist in the short-term, the recent market developments proved that it hasnโ€™t been enough to turn bulls into bears.


Our narrative within our iFAST 2020 Key Investment Themes of recovery within global economic activities, major turnaround for Asian and EM equities and global semiconductor upswing and reduced political uncertainties from trade front, and our calls on ๐™š๐™ฆ๐™ช๐™ž๐™ฉ๐™ž๐™š๐™จ ๐™จ๐™ฉ๐™ž๐™ก๐™ก ๐™–๐™ฉ๐™ฉ๐™ง๐™–๐™˜๐™ฉ๐™ž๐™ซ๐™š ๐™ค๐™ซ๐™š๐™ง ๐™›๐™ž๐™ญ๐™š๐™™ ๐™ž๐™ฃ๐™˜๐™ค๐™ข๐™š, ๐™ง๐™š๐™ข๐™–๐™ž๐™ฃ ๐™ช๐™ฃ๐™˜๐™๐™–๐™ฃ๐™œ๐™š๐™™.


Risk assets aside, keep up the hunt for capital preservation is equally important to build a balanced portfolio and seek for risk-adjusted return, is what you should do especially when the global economy is facing an inflection point.


(thanks to iFast Senior Investment Consultant, Sherman Tam Cheng Wei)


#USIran #war #investmentoutlook #marketoutlook #trucetrade #tradewar #techwar #oilprice #balancedportfolio

18 views0 comments
ย