Geopolitical Tensions Could Boost Energy, Defense Stocks While Driving Safe Haven Flows, Says BCA Research
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Energy and defense stocks are likely to outperform other sectors amid potential for escalation of Israel-Hamas conflict, per investment firm BCA Research.
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Oil prices could spike over next 12-18 months due to supply constraints if conflict spreads and Russia cuts production.
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Increased defense spending by US and Europe bodes well for defense stocks.
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Safe haven assets like gold, USD, and bonds may attract flows amid geopolitical instability.
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Potential US recession in 2024-2025 could drive copper and silver prices higher when growth rebounds.