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Recent Must Read:Resendes and Ibbotson on CNBC: No Brainer Investment Ideas
Is there reason to worry? The most similar event to the current activity in Egypt historically would probably be the Iranian Revolution in the late 1970's. The revolution in Iran caused oil prices to rise and had a negative impact on the market, all caused by unrest in the oil producing area of the middle east. The events and causes sound very similar, yet judging by the chart below the market is not reacting as negatively to the news in Egypt as it had during the Iran controversy.
The ultimate question becomes, is the market too sanguine about Egypt?
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The chart below illustrates the reaction of the S&P 500 (INDEXSP:.INX) over the first 42 days of each crisis beginning on the day of the first major event that set off the violence. In Egypt it was the Tunisian setting himself ablaze triggering an uprising that ousted the Tunisian Government (12-17-10) and in Iran it was a strike by over 30,000 Iranian workers (2-1-1979). As you can see the market reacted much more negatively to the conflict in Iran (Red Line) than it has thus far in Egypt (Blue Line). Also included in the chart are some of the more noteworthy events that occurred, plotted along the return line.
To gain access to our best stock picks and most extensive buy/sell lists, click here to sign up for our free weekly newsletter Investment Advisor Ideas.
Value Expectations, by the founders of The Applied Finance Group (AFG) provides institutional quality equity research using AFG's proprietary Economic Margin framework
Our Free Advisor Ideas Newsletter Contains:"¢ Weekly Article Summary Report & Special Updates "¢ Best Large and Small Cap Stocks to Buy and Sell "¢ Earnings Quality Report "¢ Bankruptcy Risk Report"¢ Monthly Market Review "¢ Top Dividend Stock To Buy Strategies
Stay Connected With Value Expectations
Recent Must Read:Resendes and Ibbotson on CNBC: No Brainer Investment Ideas
Is there reason to worry? The most similar event to the current activity in Egypt historically would probably be the Iranian Revolution in the late 1970's. The revolution in Iran caused oil prices to rise and had a negative impact on the market, all caused by unrest in the oil producing area of the middle east. The events and causes sound very similar, yet judging by the chart below the market is not reacting as negatively to the news in Egypt as it had during the Iran controversy.
The ultimate question becomes, is the market too sanguine about Egypt?
To gain access to our best stock picks and most extensive buy/sell lists, click here to sign up for our free weekly newsletter Investment Advisor Ideas.
The chart below illustrates the reaction of the S&P 500 (INDEXSP:.INX) over the first 42 days of each crisis beginning on the day of the first major event that set off the violence. In Egypt it was the Tunisian setting himself ablaze triggering an uprising that ousted the Tunisian Government (12-17-10) and in Iran it was a strike by over 30,000 Iranian workers (2-1-1979). As you can see the market reacted much more negatively to the conflict in Iran (Red Line) than it has thus far in Egypt (Blue Line). Also included in the chart are some of the more noteworthy events that occurred, plotted along the return line.
To gain access to our best stock picks and most extensive buy/sell lists, click here to sign up for our free weekly newsletter Investment Advisor Ideas.
Value Expectations, by the founders of The Applied Finance Group (AFG) provides institutional quality equity research using AFG's proprietary Economic Margin framework
Our Free Advisor Ideas Newsletter Contains:"¢ Weekly Article Summary Report & Special Updates "¢ Best Large and Small Cap Stocks to Buy and Sell "¢ Earnings Quality Report "¢ Bankruptcy Risk Report"¢ Monthly Market Review "¢ Top Dividend Stock To Buy Strategies
Stay Connected With Value Expectations
Recent Must Read:Resendes and Ibbotson on CNBC: No Brainer Investment Ideas
Is there reason to worry? The most similar event to the current activity in Egypt historically would probably be the Iranian Revolution in the late 1970's. The revolution in Iran caused oil prices to rise and had a negative impact on the market, all caused by unrest in the oil producing area of the middle east. The events and causes sound very similar, yet judging by the chart below the market is not reacting as negatively to the news in Egypt as it had during the Iran controversy.
The ultimate question becomes, is the market too sanguine about Egypt?
To gain access to our best stock picks and most extensive buy/sell lists, click here to sign up for our free weekly newsletter Investment Advisor Ideas.
The chart below illustrates the reaction of the S&P 500 (INDEXSP:.INX) over the first 42 days of each crisis beginning on the day of the first major event that set off the violence. In Egypt it was the Tunisian setting himself ablaze triggering an uprising that ousted the Tunisian Government (12-17-10) and in Iran it was a strike by over 30,000 Iranian workers (2-1-1979). As you can see the market reacted much more negatively to the conflict in Iran (Red Line) than it has thus far in Egypt (Blue Line). Also included in the chart are some of the more noteworthy events that occurred, plotted along the return line.
To gain access to our best stock picks and most extensive buy/sell lists, click here to sign up for our free weekly newsletter Investment Advisor Ideas.
Value Expectations, by the founders of The Applied Finance Group (AFG) provides institutional quality equity research using AFG's proprietary Economic Margin framework
Our Free Advisor Ideas Newsletter Contains:"¢ Weekly Article Summary Report & Special Updates "¢ Best Large and Small Cap Stocks to Buy and Sell "¢ Earnings Quality Report "¢ Bankruptcy Risk Report"¢ Monthly Market Review "¢ Top Dividend Stock To Buy Strategies
Stay Connected With Value Expectations
Recent Must Read:Resendes and Ibbotson on CNBC: No Brainer Investment Ideas
Is there reason to worry? The most similar event to the current activity in Egypt historically would probably be the Iranian Revolution in the late 1970's. The revolution in Iran caused oil prices to rise and had a negative impact on the market, all caused by unrest in the oil producing area of the middle east. The events and causes sound very similar, yet judging by the chart below the market is not reacting as negatively to the news in Egypt as it had during the Iran controversy.
The ultimate question becomes, is the market too sanguine about Egypt?
To gain access to our best stock picks and most extensive buy/sell lists, click here to sign up for our free weekly newsletter Investment Advisor Ideas.
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