Sometimes it is vital to widen our perspective from the day-to-day trek through the trees of investing decisions and market data to take in the entire landscape. This morning, I take a couple of minutes to do that. Let’s look at the big picture.
(Note: Captions are automatically generated and subject to error. The French impressionist artist I mentioned at the beginning is Camille Bombois.)
We compare the US blockade of the Strait of Hormuz with selected blockades from WWI to the present and identify some limits of using economic isolation in a war ceasefire scenario.
Rapidly developing war-related negative sentiment sinks global stock markets. Then, a reversal and a powerful rally occur. The S&P makes a new high in record time. How to see this volatility? What I do with stock vol.
Only a political ignoramus can ignore the burning up of the planet.
Is it a blockade or is it a siege? These are forms of war not usually examined by the current crop of younger financial market agents. We advise studying history of sieges and their connection to economics.
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