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ISIS Rockets Hit US Embassy in Baghdad

For the first time in a long time, Baghdad MAY have some impact on our markets here at home.

The Stock Market was down today ostensibly because Oil fell below $81 per barrel. However, what is not really being widely reported is that rockets fired by ISIS have hit the US Embassy in Baghdad. I have news alerts set to keep me informed about topics that could impact our management of stocks and bonds; one of those hit mid-day and I’ve been watching things since and have been surprised by the lack of coverage of this story by our news sources here.

You will probably recall that when this embassy was being built, it was touted as the most advanced US Embassy anywhere in the world, with the most security and most sophisticated weaponry around.

I don’t know what our government’s response will be, if any. However, if this situation escalates, it will not be good for the stock market – it will however be good for the bond market.

Check out this graph of today’s action in the S&P 500:
This story hit YouTube (uploaded by Iraqis) about the time that the market started downward. It might just be a coincidence but I think it bears watching – an attack on a US Embassy is the same as an attack on US soil. If we get drawn further into this situation, look for further volatility in the stock market and for bond yields to fall as investors make a flight for safety.

As things unfold, I will keep you up-to-date here on the blog.

But, not to make lite of the situation, I really want to watch this video: