Dog Days of Summer: Geopolitical Tensions & Keeping Cool with DKB

Several weeks ago I said how I loved the beginning of summer…. We have officially hit the dog days.  Grass is burnt, garden needs to be weeded, Yankees are a half game back and the kids need to shop for College, again!  This time of year can be a grind for many in the industries we touch.  Fear not, DKB is right here with you.  The market can be a grind as well.  Just when we started to retreat back to early June levels, yesterdays almost $.10 jump may have signaled a sentiment change.  That change is primarily centered around the killing of Hamas Political Leader, Ismail Haniyeh.  Significant in of itself, more concerning is that it was done on Iranian soil.  This gives Iran full authority to retaliate… but to who?  The key is that Israel has not come out and claimed responsibility, as it has for killing a Senior Hezbollah Official in Lebanon.  Although widely assumed Israel orchestrated the attack, without an admission, it kind of puts Iran in an odd spot.  Either way, it is now feared Iran could enter into the already messy conflict thus driving up Oil futures even more.  Add to that the Fed’s comments after yesterdays meeting that saw rates hold steady one more time but stated “a reduction in the policy rate could be on the table at the September meeting” .  As we mentioned, this will likely push futures higher in the short term.  Fear and risk premiums tend to rattle a market and can stick around for a bit.  Lets hope this one doesn’t, and know that DKB is lemonade stand during these dog days.