Felix Prehn, the founder of Goat Academy, shares his perspective on why the stock market has not crashed, even with ongoing conflicts in the Middle East. Many investors are concerned about global events and their effect on markets. However, Felix Prehn explains that the situation is more stable than it appears.
Global Tensions and the Stock Market
Recent news from the Middle East includes reports of missile attacks and military actions between Iran and Israel. There are also concerns about American military bases in the region and the safety of personnel. These events sound alarming, but the stock market has not reacted with a major crash.
One reason is that, historically, conflicts in the Middle East have had a limited effect on oil exports. Since the 1990s, only a few events have caused significant disruptions. For example, during the Gulf War, oil supplies from Iraq and Kuwait were cut off, but Saudi Arabia increased production to make up for the loss.
The Real Impact of Oil
A common belief is that the world depends on Middle Eastern oil. Felix Prehn points out that this is no longer true for the United States. The U.S. is now the largest oil producer in the world and is a net exporter, not an importer. Most oil from the Middle East goes to Asian countries, not to the U.S. or Europe. This means that even if oil exports from the Gulf stop for a while, the U.S. stock market is not likely to be affected much.
Lessons for Investors
Felix Prehn emphasizes the importance of following a simple rule book for investing. He believes that sticking to proven strategies helps investors avoid emotional decisions. For example, when a stock drops sharply, many people hold on, hoping it will recover. Prehn suggests learning from mistakes and being willing to change your approach, just as successful investors do.
He also highlights the importance of resilience and adapting to new information. By following clear steps and not reacting to every headline, investors can make smarter decisions and achieve better results over time.
Stock Market Trends
Despite some stocks experiencing high volatility, such as HIMS, the overall market remains strong. Prehn notes that the Nasdaq index is performing well, and many investors have seen positive returns, especially in sectors like oil, gold, and defense.
Conclusion
Felix Prehn and Goat Academy provide valuable insights for anyone interested in the stock market. Understanding the real impact of global events and following a disciplined investment strategy can help investors stay calm and make better choices, even in uncertain times.
For more about Felix Prehn and his approach to investing, visit the Felix Prehn Goat Academy About page.