Saturday, June 12, 2010

Stock Markets Usually Fall When Wars Start

I expect that we are going to see some real stock buying opportunities, frightfully soon.  From the June 12, 2010 Times of London:

Saudi Arabia has conducted tests to stand down its air defences to enable Israeli jets to make a bombing raid on Iran’s nuclear facilities, The Times can reveal.

In the week that the UN Security Council imposed a new round of sanctions on Tehran, defence sources in the Gulf say that Riyadh has agreed to allow Israel to use a narrow corridor of its airspace in the north of the country to shorten the distance for a bombing run on Iran.

To ensure the Israeli bombers pass unmolested, Riyadh has carried out tests to make certain its own jets are not scrambled and missile defence systems not activated. Once the Israelis are through, the kingdom’s air defences will return to full alert.

Theoretically, Israel and Saudi Arabia are enemies.  But the Saudis know Iran is the real threat, and operate accordingly.

1 comment:

  1. Didn't Henry Ford say, "War is bad for business"?

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