Is anybody concerned about the conflict in Iraq disrupting world markets?

Discussion in 'General Trading Discussion' started by Allison2021, Jun 22, 2014.

  1. Allison2021

    Allison2021 Well-Known Member

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    Saudi Arabia and other neighboring countries are Sunni Muslims. Whereas, Iran and Syrian President Bashar al-Assad are Shia Muslims.

    Is anybody concerned about the conflict in Iraq disrupting world markets? ISIS, Islamic State Al-Sham, is on the march towards Baghdad. They are an extremist Sunni Muslim group which marched out of Syria to take over Iraq. They are armed military jihadists. They have killed other Sunni Muslims thinking they were Shia Muslims.

    We have politicians calling for another invasion by our troops. We have spent too many billions on that war effort.

    How will their, ISIS, march towards Baghdad affect oil prices?Saudi Arabia and other neighboring countries are Sunni Muslims. Whereas, Iran and Syrian President Bashar al-Assad are Shia Muslims.

    Is anybody concerned about the conflict in Iraq disrupting world markets? ISIS, Islamic State Al-Sham, is on the march towards Baghdad. They are an extremist Sunni Muslim group which marched out of Syria to take over Iraq. They are armed military jihadists. They have killed other Sunni Muslims thinking they were Shia Muslims.

    We have politicians calling for another invasion by our troops. We have spent too many billions on that war effort.

    How will their, ISIS, march towards Baghdad affect oil prices?
     
  2. Rosyrain

    Rosyrain Senior Investor

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    I am very concerned about these issues because they always seem to have a negative impact on the stock market and the economy as a whole. I have noticed a raise in gas prices this week, but I am not sure if this is a normal summer thing or due to the conflict yet.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I continue to be long crude oil via an ETF, and also continue to be long about a dozen and a half oil / energy companies - particularly some of the better companies involved in drilling / fracking and nat gas here in the US and North America. I'm also long gold, silver, nat gas, several other metals in lesser amounts, and an agricultural index ETF. And I've got plenty of cash on hand for bargain hunting in the event of a big correction or bear market. I also still have a small broad market short position via ETF.
     
  4. Allison2021

    Allison2021 Well-Known Member

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    Jr is brilliant to have funds that include crude oil, and natural gas. However, I don't get why such a sharp witted investor has GOLD. JR Ewing wrote, "I'm also long gold, silver, ... " which is something I do not understand. There has been a downward trend on the metals; so, why would you hedge your bets on ti.
     
    Last edited by a moderator: Jul 8, 2016
  5. Gelsemium

    Gelsemium Senior Investor

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    I think that any war has the potential do disrupt the markets, especially wars in locations where big money is involved. On the other hand, how do we know if these wars are not deliberate to cause these disruptions?
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm longterm bullish on gold and also silver to a lesser extent.

    I tend to prefer buying or buying more of solid investments after they've been beaten down good and have fallen out of favor with the retail crowd.

    In the less important (to me) midterm (say 1-5 years or so), I suspect gold will likely go up once inflation starts to dig in. All this QE and printing and pumping dollars will eventually have consequences.

    In the least important (to me) short term, gold and oil are both places where many run to when doom and gloom panic starts to kick in. Oil especially when the Middle East starts getting out of hand. And gold when just about anything else happens - inflation fears, crash fears, etc. These often (not always) tend to be good shortterm investments when there's volatility.
     
    Last edited by a moderator: Jul 8, 2016
  7. Allison2021

    Allison2021 Well-Known Member

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    OK, I STAND CORRECTED BY JR Ewing, I like writing that, in which I thought I was correct about the long term downward pressure has on gold.
    However, back to ISIS, there are probable disruptions that will affect the Iraqi production of oil. I understand that we do not buy too much oil from Iraq but what about the Europeans? They cease purchasing other items when thy pay more for crude oil.
     
  8. cameronpalte

    cameronpalte Well-Known Member

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    I think they will effect oil prices - and continue to do so especially as they seem to be gaining more territory. However, I do not think they will have as big of an effect on the global markets. I am concerned to see what would happen if they were to manage to capture Baghdad which is the capital of Iraq. Should they manage to capital Baghdad I think it will have two notable effects.

    The first effect would be a sharp increase in global oil prices and the second effect would be that other countries will start looking at the situation very seriously, and some may even start to get involved. From how it is looking so far I am considering a small position in oil just to see how it ends up playing out.
     
  9. suiac

    suiac Guest

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    A war can seriously harm the economy of a country and this can only affect the markets in a negative way. Nothing good can come out from a war and that has a bad influence on the markets and everything around them.
     
  10. JaydonTyler

    JaydonTyler Well-Known Member

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    In the future "war" will be a reason the market collapses. But, it's going to be a war on America by America. We arent there yet. Start worrying once the U.S constitution is destroyed following the destruction of the 2nd amendment. Until that time, keep doing what you need to do and hopefully you can make some real money, you're going to need it.
     

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