Asks for Allie McCartney's read on the market reaction to the Middle East conflict, referencing David Solomon's surprise.
Carol Massar
Allie McCartney
States geopolitical issues have a 'very muted effect on markets' unless prolonged, and have a short-lived emotional impact on decision-makers.
Asks for the time period that would trigger a re-evaluation of the bullish view.
Tim Stenovec
Allie McCartney
Cites UBS analysis: if the conflict lasts six months with oil sustained at $90 and natural gas up 30%, it would take about 60 basis points off consumer spending.
Raises the concern that US intervention could create a bigger enemy, leading to long-term volatility and higher yields.
Carol Massar
Allie McCartney
Acknowledges the volatility and 'flight to safety' into large-cap US stocks but reiterates that the worst-case macroeconomic scenario is a Middle East region destabilized and unwilling to produce oil for the West.