As tensions between Israel and Gaza continue to escalate to near 2009 levels, markets have not reacted to the news. Rather, markets were much more intrigued by what Janet Yellen had to say to congress. She didn't stir the boat enough to reverse one of the most robust financial recoveries of all time. She note however that biotech and social media valuations seem "substantially stretched." Shocker. Still, markets continue to rise. In my mind, there is no doubt that the US is truly on the road to recovery and in the future the business outlook is strong.
But, I do find it rather perplexing that the street isn't recognizing the conflicts in the Middle East and Ukraine at the moment. Besides a very quick taper, the street has always been worried that a potential war could bring the market down. Yet, it would be very easy to argue that Israel and Hamas are essentially, if not formally at war. Isis continues to take over Iraq. Meanwhile, Pro Russian Separatists in Ukraine are shooting planes out of the sky.
Hamas has decided to take advantage of the latest conflict as they were essentially out of options. With Egypt out of the picture, running out of money, resources, and morale they did what they do best: make conflict. Although the actions of Israel are perennially destructive, unlawful, and cruel, the Palestinian nationalists have not taken the high route in this mess. Rather, high ranking members of hamas have taken shelter beneath hospitals and schools, in order to shield themselves. One would think that would mean game over in terms of air strike, due to basic human law. Yet, when it comes to Israel, as we all know, they do not need to play by the rules. When the US bows down to their actions, and allows Israel to continually disregard international laws, agreements, and human right, they have no incentive to play by the rules.
Unless the US government will not take the proper stance against Israel. Because of this, Israel and Palestine will continue to fight until Israel will inevitably get what they want -- they always do.
The Iraq conflict has been put on the back burner by the main stream media. But, the group has been able to remove the last Christians from Mosul. Additionally, Iran is attempting to spread a theory that ISIS is actually an American plot to protect Israel. I don't understand why they think there is a conspiracy about protecting Israel. US foreign policy's greatest achievement has been protecting Israel, there is no doubt about this. Still, the threat to Iraq is real, and is overshadowed by the pro Russian separatists. Nothing new there either. Who doesn't like a good pseudo cold war Russian imperialism story?
In my opinion, the market right now, is close to euphoria. The only thing the street cares about right now is the Fed's balance sheet, and to a certain extent valuation. Other than that, it looks like the world could go yo hell and trader would still be buying. Buying stock right now is still the only game in town, but I am looking for non cyclicals and dividend paying defensive stocks.
But, I do find it rather perplexing that the street isn't recognizing the conflicts in the Middle East and Ukraine at the moment. Besides a very quick taper, the street has always been worried that a potential war could bring the market down. Yet, it would be very easy to argue that Israel and Hamas are essentially, if not formally at war. Isis continues to take over Iraq. Meanwhile, Pro Russian Separatists in Ukraine are shooting planes out of the sky.
Hamas has decided to take advantage of the latest conflict as they were essentially out of options. With Egypt out of the picture, running out of money, resources, and morale they did what they do best: make conflict. Although the actions of Israel are perennially destructive, unlawful, and cruel, the Palestinian nationalists have not taken the high route in this mess. Rather, high ranking members of hamas have taken shelter beneath hospitals and schools, in order to shield themselves. One would think that would mean game over in terms of air strike, due to basic human law. Yet, when it comes to Israel, as we all know, they do not need to play by the rules. When the US bows down to their actions, and allows Israel to continually disregard international laws, agreements, and human right, they have no incentive to play by the rules.
Unless the US government will not take the proper stance against Israel. Because of this, Israel and Palestine will continue to fight until Israel will inevitably get what they want -- they always do.
The Iraq conflict has been put on the back burner by the main stream media. But, the group has been able to remove the last Christians from Mosul. Additionally, Iran is attempting to spread a theory that ISIS is actually an American plot to protect Israel. I don't understand why they think there is a conspiracy about protecting Israel. US foreign policy's greatest achievement has been protecting Israel, there is no doubt about this. Still, the threat to Iraq is real, and is overshadowed by the pro Russian separatists. Nothing new there either. Who doesn't like a good pseudo cold war Russian imperialism story?
In my opinion, the market right now, is close to euphoria. The only thing the street cares about right now is the Fed's balance sheet, and to a certain extent valuation. Other than that, it looks like the world could go yo hell and trader would still be buying. Buying stock right now is still the only game in town, but I am looking for non cyclicals and dividend paying defensive stocks.
