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By Luc FILIP, CFA, Head of Discretionary Portfolio Management, SYZ AM
On January 3rd 2020, U.S. airstrikes in Iraq killed an important Iranian general, bringing a spike of geopolitical risk. While no one can predict exactly the final outcome, there is definitely fear of escalating tensions in the Middle East, including possible retaliation and further conflict.
On January 7th 2020, the Iranians responded by firing missiles at U.S. bases in Iraq. While this is unlikely to lead neither to an outright warnor to an economic recession, it will add volatility to global markets. In this early January, markets reacted with oil and gold shooting upwhile the stock market fell and interest rates declined.
However, we expect soft but positive...
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