I was starting to wonder why the market behaved the way it did when Dow put on a decent recovery last Friday...then I realised that perhaps
it could be down to the Riyadh tensions over the Khashoggi affair. US congressman appear to take it seriously but it remains to be seen if US
is prepared to allow a serious diplomatic crisis with its Middle Eastern ally over a reporter that POTUS himself probably does not seem to care much (does it over any media?). ASX 200 has dropped a whopping 8% from its 30 August high of 6,352 almost wiping out all gains made since the start of April. I doubt it will get pass 10% (correction) and as soon as this Khashoggi affair blows over, the markets may well resume. So at this point, reckon its a good opportunity to pick some well beaten down stocks - hence APX/ PPS/ PME this morning.
If you remember WW1 was started with the assassination of the Austrian duke, so it would be interesting to see if the Khashoggi affair could well change geopolitical relationships in the Middle East, cause a soaring oil price that would break the camel's back and derail world economy.
