This past week, tensions heated up in the Middle East with Israel sending troops into Gaza and the possibility of the Malaysian airline being shot down over Ukraine. What does it mean for U.S. markets?
Events like this are considered exogenous variables. They are things you cannot control or predict. They are disruptive, but they are also the norm. There has been turmoil in the Middle East for many years, and while it is a negative on the market, we cannot predict how much it will affect us from year to year.
An interruption in the oil supply would be the most disruptive to the global economy. Between Canada, the United States and Mexico, North America could be energy independent by 2020. However, that would hurt emerging markets most.
We believe the United States is in pretty good economic condition right now. While geopolitical negatives will influence the world’s markets, we believe we can weather the disruptions.
If you have questions on how global politics may affect your investments, contact the Experts at Henssler Financial: