how does the Middle East conflict affect the stock market? I can understand the effects on gas prices.?

Answer 1

Your question requires days of analysis and data processing, but to give you a quick answer;

1- Gas is only 1 of the derivatives of petroleum - other bi-products such as asphalt, phosphates kirosine etc will also be more expensive. The general consensus is that will cause higher levels of inflation, slightly lower the standards of living thus less money for investment related purposes.

2- Trade - companies that have considerable trade with middle eastern countries will suffer due to lower demand, higher transportation and insurance costs etc.

3- Tourism - expected to decline from and to middle eastern countries, even to countries that are far away from the conflict. Keep an eye on tourism related firms listed

Answer 2

Equity investors hate uncertainty because we the generic public hate uncertainty and it is we the generic public that drives the profitibilty of companies (via product purchases, etc.) and thus the success or failure of their stock. This conflict does a couple of things which affects the stock market. 1) It creates uncertainty which makes we the public scared and uncertain about things and less likely to want to take a risk on stocks and more likely to put our money in safe investments (ie - bonds, the bank, etc.) in case we need it. 2) It increases the price of oil which if you think about it is a common ingredient on many things these days. Oil goes up, the cost of raw materials increases, the cost of shipping increases, which in the end makes materials for goods and services increase which make the price of things ultimately increase and the likelihood a consumer buys it decrease. Also, the cost of a consumer going to the store to buy something increases and therefore making the likelihood a consumer will actually get in the car to make that purchase, decrease. So if less goods are sold, corporate earnings decrease, and the price of a company's stock goes down. The stock market knows this and acts accordingly (whether it is merited or not can be debated).

Answer 3

No! stay away. he's there now and every time he rattles the sabre, up is going the cost of a barrel of oil.. it extremely is with the help of the fact the two generating international places and the oil companies ( examine G.W.B.) are waiting for any excuse to line their wallet further and extra. actually, basically the day in the previous at present, Saudi Arabia has pronounced that it's going to help the cost at $50.00 a barrel if it starts off to flow down. it extremely is extra that two times the $23.00 they have been helping in the previous the Iraqi debacle. they are all getting used to the coin. If Bush interferes appreciably interior the middle East his relatives will grow to be lots wealthier. What does a individual do with lots ,funds they can't in all likelihood spend. Pull a Buffet-Gates deal? I doubt that.

Answer 4

Gas Prices affect the economy as a whole, since everything runs on oil. That's the short answer.