By Jeff Miller:
In the past week there has been a dramatic change for the worse in everything we have been tracking in our “Ugly” section. Risks that are generally described with the euphemism of “geopolitical” have become expanded military actions – Ukraine, Gaza, and Iraq.
With no sign of an early resolution, the crises deserve additional thought.
I expect financial media to ask: How will the “headline risk” from crises affect financial markets?
Prior Theme Recap
In last week’s WTWA I expected that attention would focus on the Fed and the end of QE. That was accurate only for about two days! World events quickly provided more dramatic stories. We face much the same problem this week. In the absence of a clear economic or earnings theme, the impact from the world’s hot spots become even more important to financial markets.
Naturally we would all like to know the direction of the
