If you have been putting yourself binge-viewing cable business channels to keep abreast of the latest on the Continuing Resolution/ debt ceiling saga (i.e. The Congressional Clown Show), you may have missed two very important geopolitical developments: a major thaw in U.S.- Iranian relations and a UN Security Council vote favoring a U.S. backed resolution to eradicate Syria’s chemical weapons.
I believe these to be very important breakthroughs.
For the first time in thirty-four years we are talking to the Iranians. Secretary of State Kerry met face-to-face with Iranian Foreign Minister Zarif and President Obama had a telephone conversation with newly elected Iranian President Rohani.
It appears the combination of tough international sanction and the hard line the Obama administration took on Syrian weapons of mass destruction may have gotten the attention of the Iranian body politic. Whatever the reason, in the interest of world peace, this is a step in the right direction.
In the case of the Security Council vote, This Never Happens. Russia or China (or both) would always block U.S. proposals. Its akin to the relationship between the Republicans and the White House. One claims its day and the other claims its night. Importantly this may signify a new unified super-power approach to dealing with terrorist states. Cooperation versus competition is in everybody’s best interest.
Now, there are those in the opposition that will make light of all this. They will say the administration is naive. They will say that you can’t trust the Iranians or the Russians, and the administration is just playing politics trying to deflect attention from the continuing budget debate. Many bad things may happen before any of these developments bear fruit, if that ever occurs. But I am a ‘glass-half-full’ person and believe these are important breakthroughs.
In the meantime, even though these two developments could be additional positive supports for the market, none of this got much attention. The financial media chose to focus on the ‘Clown Show’ and the continuing questions about a possible government shutdown and/ or a default on our sovereign debt, doing their best to scare you. Don’t let ’em.
What do you think?
The information presented in kortsessions.com represents my own opinions and does not contain recommendations for any particular investment or securities. I may, from time to time, mention certain securities for illustrative purpose, names where I personally hold positions. These are not meant to be construed as recommendations to BUY or SELL. All investments and strategies should be undertaken only after careful consideration of suitability based on the risks, tolerance for risk and personal financial situation.