What does politics every have to do with your portfolio?!? I hope your answer is a lot because good Wall Street analysts factor in "future" events into the price of stocks that will be affected. After the 4th of July, the markets sent the price of oil lower, mainly due to the fact that there wasn't any breaking news and Iran had indicated that it would be more cooperative with its nuclear program and consider the demands of five of the largest members of the United Nations . Well what a difference a few hours make, because the latest reports have Iran rejecting the claims of this group and even mentioning their intent to begin War Games, which are preparing for combat readiness against potential threats. This is huge because they have even threated to block the Gulf, which is the primary waterway for transporting oil from that region. This threat will send the futures contracts for oil higher and I am recommending that you buy ETFs USO and OIL at the open tomorrow. USO already appears in my stock tracker, so lets monitor the performance.
Obama made an interesting comment that sums up my take on politics and the stock market. Obama mentioned that harsh talk to Iran appears to contribute to the rise in the oil markets. A better approach may be tough diplomacy which makes us investors more certain about future events.
RECOMMENDATION: BUY USO or OIL at the open of the market. I know I will be for a short term addition to my portfolio.
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