Threat of $100 Oil Means Buying the Dip in US Stocks Is Risky
A television station broadcasts US President Trump on the floor of the New York Stock Exchange (NYSE) in New York on March 2.
Photographer: Michael Nagle/BloombergLike clockwork, Wall Street strategists and investors are turning to a traditional playbook that says stock-market dips triggered by sudden geopolitical flareups are almost always good buying opportunities.
There’s one big asterisk to the strategy this time around, however: The potential for a prolonged US and Israeli confrontation with Iran to send oil to the neighborhood of $100 a barrel for some time, choking off the consumer-driven US economy.