The investment atmosphere is not good

The investment atmosphere is not good because the U.S. will push back the timing of the base rate cut and reduce the number of cuts due to sticky inflation

Furthermore, the Middle East’s geopolitical risks of upheaval ㅜ.ㅜ

As a result, the market has been turbulent over the past week. First of all, it seems necessary to increase the proportion of investment in safe assets. Gold dollars, etc

~ The New York Stock Exchange plunged more than 1%. On the news that Iran’s attack on Israel was imminent, there was a strong tendency to avoid risky assets. It is said that more than ㅅ0 missiles were fired from the Middle East, and the missile defense system Iron Dome was also deployed again. Oil prices also soared on concerns that Iran, the third-largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), would participate in the war and reduce crude oil supply. In an era of rising exchange rates and high interest rates… Oil prices continue to be under upward pressure. It is questionable whether the Cpi will come down or not. In particular, as funds were concentrated on safe assets such as government bonds and the dollar, interest rates on government bonds fell sharply and the dollar rose.

Oil prices are going up…U.S. government bonds, dollars, and gold

The Dow Jones Industrial Average, which collected blue chips on the New York Stock Exchange, fell 1.24% from the previous trading day to 37,983.24. The S&P 500, the benchmark for large-cap stocks, also fell 1.46% to 513.41. Overall, short selling is on the rise again, and the tech-heavy Nasdaq Composite dropped 1.62% to close at 16,175.09. The Volatility Index (VIX) of the Chicago Board of Options, dubbed the “Fear Gauge” on Wall Street, soared 16.1% from the previous trading day to 17.31. It is the highest level since October last year.

For the week, the Dow fell 2.37%, the S&P 500 fell 1.56% and the Nasdaq Composite fell 0.45%.

The phenomenon of avoiding risky assets appeared strongly due to heightened geopolitical tensions. The Wall Street Journal (WSJ) reported that Iran could attack Israel within two days in retaliation for the bombing of its consulate in Syria.

The WSJ reported that Israel is preparing for Iran’s direct attack on the southern or northern part of the country from the 12th to the 13th.

A U.S. intelligence report earlier this week also said an attack on Israeli assets could be imminent by Iran or its proxies. But sources said it now appears the attack could take place within Israel’s borders.

Iran has been vowing to retaliate against Israel after its consulate in Syria was bombed by Israel on May 1, killing high-ranking officials of the Iranian Revolutionary Guard (IRGC), including General Mohammad Reza Zahedi. However, it is still unclear whether Iran’s retaliation will actually go ahead or what level it will take.

“Investor sentiment is further shrinking as we head into the weekend,” said Rob Howarth, chief investment strategist at U.S. Bank Wealth Management. “As the dollar strengthens, funds are flowing into safe assets and stocks are selling off.”

“Investors have pushed back on expectations that the Fed will start cutting interest rates, and now they are watching the impact of the geopolitical crisis on the market,” said Jose Torres of Interactive Brokers.