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Markets and the Middle East

Unhedged

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Investor Sentiment and Market Dynamics

This chapter explores the nuanced investor sentiment amidst geopolitical tensions, particularly addressing the lack of market reaction to conflicts involving Iran. It discusses the psychological factors influencing trading behavior, the critical role of oil prices, and the implications of energy inflation on consumers and the economy. The chapter also compares current market resilience to past oil shocks and examines the interplay of Federal Reserve policies, upcoming elections, and ongoing global conflicts.

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