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What do stock market investors need to know about intensifying the U.S.-Iran tensions?

We have seen news saying that the markets are tanking because of Middle East tensions and Trump waging a war against Iran.
Well, it may have been an excuse for people to unload some gaining positions. But it apparently is not enough to stop this bull market.

If we review the economic data we have seen recently coming:

  • consumer confidence slipped down to 126.5
  • jobless claims flat at 222k
  • ISM manufacturing down from 48.1 to 47.2 indicating that manufacturing is in recession.

we can see that investors in fact, didn’t care. On top of that, we can see that they pretty much didn’t care about the tension in the Middle East either; despite media bombarding us with bad news.

If the tensions was such a bad thing, and it would plunge the entire world in a WWIII the markets would already collapsed. We saw the markets to drop by 1.2% on Friday (and recovered as high as 0.55% closing down 0.72%) and today although we opened down 0.44% we are already up 0.20%.
There is no follow through, no panic, no mass selloff. And a market which refuses to go down has only one way to go.

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