This past week, tensions heated up in the Middle East with Israel sending troops into Gaza and the possibility of the Malaysian airline being shot down over Ukraine. What does it mean for U.S. markets?
Events like this are considered exogenous variables. They are things you cannot control or predict. They are disruptive, but they are also the norm. There has been turmoil in the Middle East for many years, and while it is a negative on the market, we cannot predict how much it will affect us from year to year.
An interruption in the oil supply would be the most disruptive to the global economy. Between Canada, the United States and Mexico, North America could be energy independent by 2020. However, that would hurt emerging markets most.
We believe the United States is in pretty good economic condition right now. While geopolitical negatives will influence the world’s markets, we believe we can weather the disruptions.
If you have questions on how global politics may affect your investments, contact the Experts at Henssler Financial:
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.