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Why U.S.-Iran Tensions Aren't a Long-Term Worry

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Late Thursday, Jan. 2, news broke that President Donald Trump had ordered a military strike that killed one of Iran's top generals.

The strike killed General Qassem Soleimani, the head of Iran's Quds Force, in Iraq at Baghdad's airport.

"At the direction of the president, the U.S. military has taken decisive defensive action to protect U.S. personnel abroad by killing Qassem Soleimani," the Pentagon said in a statement, adding the general was "actively developing plans to attack American diplomats and service members in Iraq and throughout the region."

But what impact will this event have on the markets?

Kenny Polcari, senior market strategist at SlateStone Wealth, says that investors don't need to worry about this story becoming a long-term worry for investors.

"I think it's a very short term event. It doesn't change the conversation at all about the U.S. economy, the global economy, the China-U.S. trade talks. It doesn't change Fed policy. It doesn't change the interest rate policy. It doesn't change whether or not our manufacturing PMI is strong or weak. It doesn't change it for any of the European nations as well. And so news like this creates drama and anxiety, which is what causes the nervousness. But in the long-term, it doesn't really price stocks at all. So my suggestion would just be to take a look, don't make an emotional decision. Think about it for a minute. Does this event change the story for you in terms of your investment thesis, the stocks that you own? And if it does, then I guess you should need to have a conversation with your advisor," said Polcari.   

Watch the full video for more. 

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