False claims or not?
It’s difficult to know what to believe in this era of fake news, but it appears normalised to make any claims to suit your agenda, regardless of whether they are true or not.
The US’s bombing of Iranian nuclear facilities is a case in point where Trump claimed before the planes had even landed back at base, that Iran’s nuclear facilities had been obliterated. Reports from the Pentagon suggest otherwise, although the White House say such reports are false.
Such rhetoric makes it difficult to understand what’s really going on, but it also moves markets in the short-term. This week the oil price has tumbled on the news, particularly as there has been no blockade in the Strait of Hormuz.
A whole raft of other events has unfolded this week too. At the NATO summit, it was agreed for members to commit 5% of their GDP to defence spending. Defence stocks obviously responded well.
Four years into the Ukraine invasion by Russia, it was reported by Bloomberg that within the next 12 months, there could be a systemic banking crisis in Russia. This clearly has implications for a possible peace treaty.
The US and China have finalised their ‘trade truce’ reached last month, which has helped market sentiment.
Nvidia once again becomes the biggest company in the world in valuation terms as the outlook for equities improve. Bill Gross, the co-founder of PIMCO, recommends equities over bonds.
And finally, in today’s Commentary, we reinforce why we are so positive around the Asian market.
This week’s content:
- Wheelie bin wars!
- The oil price tumbles
- Good news for defence stocks
- Nvidia’s share price reaches an all-time high
- US equities require a selective approach
- US recession fears recede
- Active vs passive – diversification or dilution?
- Equities are the only game in town!
- Asia’s revival
- Summary
Wheelie bin wars!
After Donald Trump announced on social media that Iran’s response was “very weak and he hoped that they had gotten it out of their system”, a body language expert posted that Iran’s attack of a US air base was similar to a neighbour ending a gripe about someone’s wheelie bins being put out too early. A flippant comment designed to attract attention, but the market’s response would have us believe that it is not much more than another spat.
Trump also stated, “Iran has officially responded to our obliteration of their nuclear facilities with a very weak response, which we expected and have effectively countered”.
Pentagon reports since, however, suggest that the American airstrikes didn’t destroy Iran’s core nuclear components below ground. It appears it has merely delayed the program. White House officials dismissed the reports as false, and Donald Trump said the nuclear sites are “completely destroyed.”
Continues…
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