Overbought conditions can last for some time. Also, when the BMI eventually falls from overbought, volatility can set in.
Combine that BMI data and context with an extended war and there could be some downward movement. But you’ll see it as it happens in the BMI. If stocks are a bad bet, the BMI will say so.
An Objective Outlook When Tensions Are High
Geopolitical tensions inject uncertainty into nearly all facets of life. For instance, this Iran/Israel conflict could bring increases in energy prices (oil specifically).
Using the United States Oil Fund (USO) and Energy Select Sector SPDR Fund (XLE) as proxies for oil and energy, respectively, there could be increases in those assets and others like them. If tensions drag on, it wouldn’t be surprising to see jumps in both.
No matter what occurs, following Big Money action offers a proven playbook for uncertainty. Tools like the BMI and historical studies provide an objective outlook when tensions are high. This enables better decisions using data.
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