Momentum - Friend or Foe?
Saxo Bank | Mar 02, 2012 10:47AM ET
Israel's Last Chance to Strike Iran was clearly a leaked piece to warn Iran and to make President Obama aware that Israel feels pressured and that it is running out of time. We also have a so-called "election" in Iran this week-end, in which the true opposition has been barred from running. It's funny to read we already today know the voting turnout is going to be 64%, but the overall situation is grave, too grave for my liking as the world has less than 2% spare capacity in oil production.
Geopolitical risk is a "tail-risk" (low-odds, but with very high impact) and not a base case prediction. But it concerns me greatly that the "conflict zones" are increasing week by week while the economy increasingly faces the down-sizing of global public sectors combined with elevated energy prices. Let's hope tomorrow's starting pitcher shows up to pitch a heck of a game - but I'm concerned that momentum is more about herding behaviour in this market rather than a reflection of robust prospects.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.