After Hamas attacked Israel, some of Wall Street's biggest names went on record to ring the alarm about heightened geopolitical risk.
A few even raised the once-unthinkable prospect of a world war – with billionaire Bridgewater founder Ray Dalio saying there's a 50/50 chance a conflict involving the US and China erupts, and JPMorgan chief Jamie Dimon warning of the most serious global crisis since 1938.
The market merely shrugged its shoulders. . .
A few even raised the once-unthinkable prospect of a world war – with billionaire Bridgewater founder Ray Dalio saying there's a 50/50 chance a conflict involving the US and China erupts, and JPMorgan chief Jamie Dimon warning of the most serious global crisis since 1938.
The market merely shrugged its shoulders. . .
It's a reminder that there are different rules in investing. Traders worry more about Fed chair Jerome Powell – and less about Hamas, Vladimir Putin, or even the potential threat of World War III – than someone who's not a markets junky might expect.
- Wall Street's biggest names have rung the alarm about geopolitical risk in recent weeks.
- Some – including Bridgewater founder Ray Dalio and JPMorgan boss Jamie Dimon – are even fretting about the risk of a potential world war.
- But the market doesn't seem to have noticed. Stocks are up and oil prices have fallen since Hamas attacked Israel.
World war warnings
Traders' apparent indifference flies in the face of the grave warnings issued by big-name investors – some of whom are worried that the ongoing crises in Ukraine and the Middle East could spiral into a global conflict.
"These geopolitical matters are very serious – arguably the most serious since 1938," he added, referring to the year Nazi Germany annexed parts of Czechoslovakia and stepped up its persecution of Jewish people.
- Bridgewater's Dalio said in a LinkedIn post last month that the latest conflict "is likely to have harmful effects that will extend beyond those in Israel and Gaza," adding that there's now a 50% chance of "a more uncontained hot world war that includes the major powers".
- Meanwhile, JPMorgan CEO Dimon said in an interview with the UK's the Sunday Times that the Israel-Hamas war had made the world more "scary and unpredictable".
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- Other titans of investing – including BlackRock chief Larry Fink, hedge fund legend David Einhorn, and "Oracle of Boston" Seth Klarman – have also said that they're fretting about how the war could either drag the global economy into a recession or disrupt financial markets.
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Ray Dalio, Jamie Dimon, and other Wall Street billionaires are worried about a world war. The market hasn't paid much notice.
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