The best we can say in studying past military conflicts: with the passage of time, the stock market has tended to rise - and the more time that has passed, the more it has risen.
Why?
2 reasons: 1) all wars eventually come to an end, and 2) the economy & earnings, even if impaired in the short run, still tended to grow in the long run despite these conflicts.
DEBASER: Gold and Bitcoin ETFs have combined for +$7b in flows in past week, by far a record for a 5-day period as debasement trade steals spotlight from AI. GLD, IBIT leading, in Top 10 for week. Also notable $IBIT YTD flows are now positive, completely dug out of sizable hole.
US manufacturing is booming, expanding at the fastest pace since 2022 and beating expectations in many metrics for the month of July. Omar Sharif of Inflation Insights points out that the ISM production index rose by the most for any July since 1951. bloomberg.com/news/articles/…
FED HOLDS, THREE OFFICIALS PUSH FOR HIKE
The Federal Reserve kept rates unchanged at 3.50%–3.75% in a 9–3 vote.
Hammack, Kashkari and Logan dissented, preferring a 25-basis-point hike.
The policy statement was largely unchanged from June, but the split signals growing internal pressure for tighter monetary policy.
@tradingview I have a feature request: A "close all" button next to open positions PnL would be more beneficial than the Flatten button on the DOM panel, allowing users to quickly access it for news events or scalping. The TradingView UI experience would be significantly enhanced. - TY9999
The US stock market looks fairly stable, with a measure of overall index volatility remaining at low levels. But implied volatility in single-name stocks has surged to the highest in more than a year. The gap between the two measures has never been higher: Bloomberg's Simon White
HORMUZ TRAFFIC DROPS AS CEASEFIRE COLLAPSES
Ship crossings through the Strait of Hormuz fell to 25 yesterday, below the recent daily average of 30–50.
Traffic slowed after President Trump declared the U.S.–Iran ceasefire over and both sides exchanged further strikes.
Maritime analysts say the recent recovery in shipping activity has collapsed, with the Strait again operating under full conflict conditions.
Investors are chasing meme stocks and high beta/high momentum names, just as they did back in 2021.
When the crowd acts as if there’s no risk and only reward, that’s a time for prudence.
Video: youtube.com/watch?v=RXUbtP…
Inflation accelerated again in May as energy prices surged. With purchasing power shrinking and real yields falling, investors are increasingly turning to gold.
schiffgold.com/commentaries/i…
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