With markets fading some during today’s session, the bulls will soon be looking to take some profit. Markets have run up on very light volume, and people feel somewhat uneasy with the markets trading at these levels, while no mess is fixed. We have not really had any bad news lately, and the question is, how would the market react to some not expected bad news. The Geopolitical space has been very calm, but that could change abruptly. Iran could resurface as the main geopolitical risk sooner than many think. We learnt about the Strait of Hormuz some days ago, but there is more. From Bllomberg;
One of the arguments often made in favor of bombing Iran to cripple its nuclear program is this: The mullahs in Tehran are madmen who believe it is their consecrated duty to destroy the perfidious Zionist entity (which is to say, Israel) and so are building nuclear weapons to launch at Tel Aviv at the first favorable moment.
It’s beyond a doubt that the Iranian regime would like to bring about the destruction of Israel. However, the mullahs are also cynics and men determined, more than anything, to maintain their hold on absolute power.