Geopolitical tensions, such as Iran attacking Israel, can impact stock markets and energy prices

From Yahoo Finance: 2025-06-22 13:30:00

In April 2024, Iran attacked Israel, sparking fears of broader war and economic implications. Despite worries, the S&P 500 rose 18.6% since the incident. Overreacting to geopolitical events can lead to costly decisions, as history shows stocks tend to recover after initial declines.

Investors shouldn’t panic in turbulent times, as data from past geopolitical events suggests. The Middle East has seen stock market resilience since 2003. Overreacting can lead to missed opportunities for gains in the future, highlighting the importance of staying calm and informed.

The Big Money Index (BMI) from MoneyFlows tracks investor activity and trends. Currently overbought at 82.3%, the BMI can signal potential market volatility. Combining BMI data with geopolitical context can provide insight into market movements and potential risks.

Geopolitical tensions, like the Iran/Israel conflict, can impact energy prices, particularly oil. Assets like the United States Oil Fund (USO) and Energy Select Sector SPDR Fund (XLE) could see increases if tensions persist. Following Big Money action and using tools like the BMI can help navigate uncertainty and make informed decisions.



Read more at Yahoo Finance: Stocks Playbook for Geopolitical Tensions (Overreacting is Costly)