But it’s not all doom and gloom, and investors shouldn’t let fear get the better of them. Although no one can predict when the oil shock and war will end, we can still stick with our investing fundamentals by looking for good businesses backed by sound structural drivers.
Recently, it has become commonplace to wake up to a sea of red in the world’s stock markets. Equity prices have been whipsawing as the markets struggle to make up their minds about exactly when the conflict in Iran and the Middle East will end.
Fears of a prolonged closure at the Strait of Hormuz, through which roughly 20% of global oil and gas flow, have sent oil prices soaring. Last week, the price of Brent crude closed at above US$100 ($128.15) a barrel for the first time in four years.
