> Home
   > Contact Us
   > Disclosure
 
Home
Wealth Management Services
Who We Serve
About Centricity
Client Center
Resources
Featured News
Articles Of Interest
Financial Briefs
Market Data
Contact Centricity
 
More Articles  Printer Friendly Version

 

Why Stocks Shrugged Off Iran Escalation

As the U.S. Government was reportedly sending additional troops to the Mideast, after killing a top Iranian leader, fear of Iran's asymmetric warfare tactics spread. The Standard & Poor's 500 stock index closed slightly lower than yesterday's 3,257.85 all-time high, ending on Friday, January 3, 2020, at 3,234.85.

Here's why: The U.S. economy is expected to grow 2% after inflation in 2020.

That's not roaring growth, but the Fed's projections as of December 11th, 2019 were realistic and make it likely that the 10½-year old expansion will continue despite the new foreign crisis.

Although a war with Iran would present serious new risks, not to mention ethical questions, the evidence shows that the U.S. consumer's behavior is not much affected by foreign conflicts.

The U.S.-China trade war did not prevent the stock market from rising nearly 30% in 2019. Brexit did not stop the bull market. The bull market kept right on going.

The U.S. is exceptional among world economies because the consumer population makes 75% of U.S. gross domestic product and they keep growing in wealth by objective standards — despite foreign crises, politics, and ephemeral distractions.


This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.


Email this article to a friend


Index
Economists Expected Q1 U.S. Growth Of 1.6%; It's 2.6%! 
Stocks Close At New High As Business Owner Optimism Surged
Retirement Revolution Unexpectedly Is Boosting Economy
Coronavirus Scare Reveals The Nature Of Stock Market Risk
Leading Indicators Slightly Off Again
S&P 500 Breaks All-Time Record Again
Steady Economy Briefly Drives Dow Beyond 29,000
A Spectacular Year For Stocks
A Case For A Bull Market In 2020
Good Economic News Again
An Unusual Constellation Of Economic Surprises
Longest U.S. Expansion Keeps Rolling
Retirement Income Reality Check
Find The Major Economic Trend Hidden In This Picture
Is The New Record High In Stocks Irrational?

This article was written by a professional financial journalist for Centricity Wealth Management and is not intended as legal or investment advice.

©2020 Advisor Products Inc. All Rights Reserved.
© 2020 Centricity Wealth Management | 515 Executive Campus Dr., Suite 100, Westerville, OH 43082 | All rights reserved
P: 614-392-5155 | info@centricitywealth.com |
Privacy | Form ADV | Disclosure | Contact Us | Home

Centricity Wealth Management, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Centricity Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Centricity Wealth Management, LLC unless a client service agreement is in place.