Friday, August 30th, 2013
By George Leong, B.Comm. for Profit Confidential
If the U.S. and its allies attack Syria, the impact on the global economy and the stock market will be negative and how bad it gets will largely be dependent on the degree and length of the war.
We are already seeing what’s happening in the market. Oil prices have been rising, especially Brent crude, due to the obvious impact the escalation of a war would have on oil flow.
The chart below of the spot price of Brent crude oil shows the breakout at the $110.00 level.
Chart courtesy of www.StockCharts.com
So, you have Iran and Iraq as neighbors of Syria. While both are not part of the Organization of the Petroleum Exporting Countries (OPEC), there will still clearly be a disruption to the oil flow, especially to Europe and Asia.
If you are an active trader, you should look at either buying oil-based exchange-traded funds (ETFs) or oil futures, or playing the market via leveraged call options on oil. Either way, money will be made if a war surfaces—just think back to what happened in Iraq.