Bad News from Middle East --- Buy or Sell Stocks?

Question

You own a stock and bond portfolio with a large portion of your family savings. You are logged into a brokerage account ready to buy or sell stocks. While sitting at your keyboard, news arrives that a region wide war in the Middle East is breaking out. Which stocks or sectors do you want to be in and which ones to avoid.
This is not a political commentary but a brain storming investment exercise.

Answer 1

The immediate, knee jerking reaction for most people is to sell everything that moves, and those that don't.

For the first day or 2, everything will go down - everything. except cash.

Once the initial panic is over, and people start realizing that they are still alive and no hordes of mujahideen are at their doors, then the dumpster searches begin.

I would buy stocks related to defence ( Boeing, Lockheed, etc ), and oil/gas ( Exxon, Shell, etc ). But, honestly, at that time, most stocks will be a bargain, so just choose good solid stocks like Citicorp, or GE, or Home Depot, Berkshire, etc - buy then hold.

Answer 2

Essentially large war in middle east=skyrocketing gas prices.

Buy oil--there's an oil etf (the ticker symbol of which I can't remember off the top of my head). You might also consider stock in royalty trusts that own oil fields in North America. I own or have owned Prudhoe Bay Trust (BPT) the Sabine (SBR) and Harvest Energy (HTE) at various times and all three pay sizeable dividends and would probably go up.

Just about everything else would probably go down after such a major rumble from the middle east--how long depends on the size of the war.

You might also consider shorting stocks that would likely be hit hard by an economic downturn and a corresponding decrease in consumer spending--retailers are an obvious target.

Military stocks might also do well (they might sell to the companies in question and even if they don't there's a good chance the US might be sucked in).

And of course people will still get older-- stick with medical.

First things to come to mind.

Answer 3

i could keep away from l. a. to keep away from the caught-up *******. And, Orange County is as pretend using fact the Disneyland that occupies it. I grew up on the l. a./Orange county line and went into the army in 1981. In 1984, I have been given stationed on a submarine in San Diego and that i've got been right here ever when you consider that. once I have been given out in 1987, I had the choice to bypass back as much as l. a./Orange county or stay right here. And, it replaced right into a no brainer. it somewhat is costly, regardless of the undeniable fact that. Taxes are intense, housing is costly, and as properly Hawaii, it has the main costly gas interior the rustic. to no longer point out the main costly electrical energy expenses. And, like somebody else mentioned, you will in all probability have a complicated time getting a superb paying activity those days. So, you will ought to hold a good bite of replace with you to proceed to exist till you get settled. yet, there's no longer a nicer climate interior the US, aside from perhaps Hawaii. And, the people in San Diego are very intense-high quality. it somewhat is in all probability the main small-city enormous city you will ever stay in. And, each and every thing is great handy. yet, that each and every physique comes at a value.

Answer 4

Sell all immediately, you can always buy back later if a sector still looks ok. Alternatively, sell the lot and buy Indian shares, there are some great opportunities in India plus economic stability. Have a look at www.sharesdaily.in