Compared to last week’s ‘brink-of-war’ geopolitical shock start to the year over the US-Iran tensions, this week has brought relatively positive economic news, with not much to upset global markets, even if the general news flow was tragic from a humanitarian and environmental perspective. At the moment, no new bad news is good news in investments, with constant talk of “liquidity” (for institutional investors) and “dry-powder” (for private equity groups). Whether investors’ money is wet or dry, does not matter. The US’s NASDAQ tech stock index is above 9,000 for the first time, as we write.
Stock markets took it decidedly positively that Iran put more effort behind domestic propaganda than actual hostilities against the US and its allies. This allowed a return of the quiet with which the year originally started, even though many political observers warn that this may not be the end of the affair.
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