The threat of Iranian drones pounding the beaches of California and lingeringly high oil prices could see a Spring sell-off in U.S. stocks.
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Oil Hit to Earnings
Kathleen Brooks, research director at broker XTB, said that global equities may not have been as badly impacted by the Iran conflict as other assets such as major sovereign bonds, but warned that this could be temporary as analysts assess the long-term rise in the oil price on future corporate earnings.
“If the crisis persists into April and beyond, that is when the damage could hit earnings expectations and cause a bigger sell-off in stocks. For now, we expect stocks to oscillate based on news flow,” she said.
Some of that flow sounds pretty scary if you are a resident of California. Plenty of beaches and wine and good times, but it wouldn’t take long for an Iranian drone to spoil the mood.
Souring in U.S. Sentiment
This refers to a story on ABC News that the FBI had sent a warning to police departments in California in recent days that Iran could retaliate for American attacks by launching drones at the West Coast. Apparently, they could be launched from a vessel off the American coast.
“If the US has started a long-term war, demand for US-based assets could get eroded, and earlier reports that Iranian drones could hit California may also lead to a souring of sentiment towards U.S. stocks,” Brooks said.
There is still hope among equity investors that the oil price spike is only temporary if the war ends soon. However, if it drags on and even spreads with today the prospect of U.S. Marines boots on the ground, then equity investors will not be able to ignore the risks.
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Iranian Drones Pounding California Could See a Spring Sell-Off in U.S. Stocks,Warns Broker
The threat of Iranian drones pounding the beaches of California and lingeringly high oil prices could see a Spring sell-off in U.S. stocks.
Claim 70% Off TipRanks Premium
Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential
Oil Hit to Earnings
Kathleen Brooks, research director at broker XTB, said that global equities may not have been as badly impacted by the Iran conflict as other assets such as major sovereign bonds, but warned that this could be temporary as analysts assess the long-term rise in the oil price on future corporate earnings.
“If the crisis persists into April and beyond, that is when the damage could hit earnings expectations and cause a bigger sell-off in stocks. For now, we expect stocks to oscillate based on news flow,” she said.
Some of that flow sounds pretty scary if you are a resident of California. Plenty of beaches and wine and good times, but it wouldn’t take long for an Iranian drone to spoil the mood.
Souring in U.S. Sentiment
This refers to a story on ABC News that the FBI had sent a warning to police departments in California in recent days that Iran could retaliate for American attacks by launching drones at the West Coast. Apparently, they could be launched from a vessel off the American coast.
“If the US has started a long-term war, demand for US-based assets could get eroded, and earlier reports that Iranian drones could hit California may also lead to a souring of sentiment towards U.S. stocks,” Brooks said.
There is still hope among equity investors that the oil price spike is only temporary if the war ends soon. However, if it drags on and even spreads with today the prospect of U.S. Marines boots on the ground, then equity investors will not be able to ignore the risks.
What are the Best Blue Chip Stocks to Buy Now?
We have rounded up the best blue chip stocks to buy now using our TipRanks comparison tool. As can be seen below, Microsoft MSFT -1.62% ▼ has the best upside of 49.93%.
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