Yesterday, a U.S. airstrike killed Maj. Gen. Qassem Soleimani, leader of the foreign wing of Iran’s Islamic Revolutionary Guard Corps. News of the strike and the general’s death sent safe-haven asset prices higher as investors priced in greater risk in the Middle East.
Assets such as gold and the 10-year U.S. Treasury note saw their prices rise as investor sentiment weakened. Gold was up 1.4% while the 10-year was at 1.827% Friday morning from 1.880% on Thursday (a drop in yield reflects an increase in price), while DJIA futures were down 226 pts pre-open.
Is this a New Year’s prediction of what’s ahead? Of course not. But it is absolutely a micro-example of how assets react when uncertainty abounds. My advice to you: Make sure you’re prepared for unforeseen events that may rip through your portfolio in times of trouble.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- Happy Martin Luther King Jr. Day! - January 18, 2021
- Are $2,000 Checks Going to Rebuild NYC? - January 15, 2021
- The Fed is Sacrificing Retirees to Save the Banks - January 15, 2021
- How Are You Doing on a Local Level? - January 14, 2021
- February RAGE Gauge: Americans Focusing on What’s In Front of Them - January 14, 2021