The current situation in between Israel and Palestine has the world in a frenzy. But how does this affect the market? Defense stocks are currently on the rise. The US government is providing Israel with necessary war supplies. In my opinion, defense companies that take on these orders are bound to explode sooner or later. On the other hand, travel companies have been bearish due to the many canceled flights and fear surrounding travel to the Middle East. The United States has issued travel advisories to Israel and other Middle Eastern countries, causing people to cancel trips.
The end of Quarter 3 was a positive quarter for the banking sector. Citigroup, Wells Fargo, and JPMorgan Chase all reported high earnings for Q3. Interest rates have been rising across all banks. Higher interest rates mean that blue-chip banks will earn more profit. A headwind for these companies is that if the economy turns for the worse people will default on consumer loans leading to a significant loss.
My Weekly Stock Picks-
- Raytech defense
- Boeing
- Wells Fargo