The Iran-US war is evolving with each passing second. Both forces are busy targeting each other, as Iran continues to strike the US, with the US retaliating with equal force. Amid all this, the global markets have now started to show a little skepticism, with the financial order tilting towards a pessimistic stance, outlined by none other than economist Peter Schiff.
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Peter Schiff Sounds Alarm
In a new tweet on X, economist Peter Schiff shared how the ongoing Iran US war can turn lethal for markets if dragged on for days. Schiff tweeted that this scenario may turn pessimistic for markets in the long haul if this war continues to gain momentum.
The expert stated that “once the markets start to price in a more pessimistic outcome,” the aforementioned development may start to impact crypto, the dollar, and stocks in the most eventful manner.
“Investors seem to be assuming a short and successful war. While that would be the ideal outcome, I think the probability is low. Once the markets start to price in a more pessimistic outcome, stocks, bonds, crypto, and the dollar will be much lower, and oil and gold much higher.”
The markets are currently balancing the risks, with dollars and stocks posting modest gains as of late. Rising Fed expectations of keeping rates high to fight inflation amid the war narratives caused a short spike in the US dollar. However, if the war takes on a rigorous route, it may push the global investor sentiment to rush towards solid safe havens such as gold and oil again.
Gold and Oil to the Rescue
According to Schiff, gold and oil are the only two products that may gain significantly in the long run. In a scenario where markets price in pessimism, gold and oil are the only two commodities that’ll emerge stronger among their other competitors and peers.
Per Rashad Hajiyev, gold is expected to hit the $7k to $8k price level soon in the future.
“I believe very good times for the precious metals sectors are just about around the corner. Once the present declining cycle ends. Which I believe is either done or about to be done. An impulsive advancing cycle in metals and miners is going to be the case. Just as previously. One could see in the example of junior silver miners SILJ….”
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