Investors Seek Opportunities Amid Israel-Hamas War and Market Turmoil
Originally Published 2 years ago — by MarketWatch
The Israel-Hamas war has not led to a rush into traditional safe-haven assets, leaving analysts and investors puzzled. Market volatility has increased, but the lack of pronounced volatility and subdued inflows into safe havens may reflect a sense of paralysis due to an overwhelming array of worries. Gold and the Swiss franc have rallied as the only two havens benefiting from the conflict, while U.S. Treasuries have suffered. Rising Treasury yields and geopolitical concerns have contributed to a rough October for stocks. The Japanese yen, typically a haven beneficiary, has been left on the sidelines. Investors are not buying US Treasuries due to uncertainty about inflation, expectations of more Federal Reserve rate hikes, and concerns about increasing federal debt. The laundry list of worries, including the Mideast conflict, Ukraine war, US political issues, China's property problems, and US-China tensions, will likely lead to more unsettled trading conditions.