Oil Jumps On Hamas’ Attack

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Oil Jumps On Hamas’ Attack Oil prices skyrocketed by more than 3% after Hamas’ attack on Israel which traders fear that could escalate the conflict between the US and Iran. Right now, there is little threat to the oil supply. But the key is Iran’s response. The US recently sent warships to the region, and Wall Street is worried that Iran could retaliate by closing the critical shipping artery in the Strait of Hormuz. - “Key for markets is whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia,” ANZ Group Holdings Ltd. analysts Brian Martin and Daniel Hynes said in a note. - “Initially at least, it seems markets will assume the situation will remain limited in scope, duration, and oil-price consequences. But higher volatility can be expected.” The Wall Street Journal reported that Iranian security officials helped plan Hamas’ attack. Namely, Iran’s Islamic Revolutionary Guard Corps worked with Hamas since August to execute the air, land and sea attack. The US’s Secretary of State Antony Blinken said there was no official “evidence that Iran directed” the attack. - “We have not yet seen evidence that Iran directed or was behind this particular attack, but there is certainly a long relationship,” said Blinken. US’s Secretary of State Antony Blinken (Photo: Ron Przysucha/ Public Domain) However, Iran’s supreme leader, Ayatollah Ali Khamenei, didn’t hide his praise for the attack, posting on X: - “Zionist regime will be eradicated at the hands of the Palestinian people and the Resistance forces throughout the region.” Could it mean that the US would impose more sanctions on Iran? That could have implications on the oil supply. Senior Israeli security officials also threatened to strike at Iran’s leadership if Iran was responsible for the attack, potentially escalating the conflict in Middle East. Can the rally be sustained? The S&P 500 is up by more than 12% for the year. But the worries about higher interest rates due to strong economic data took the air out from the early rally. If there is anything that we learned since the pandemic, the markets have been full of surprises. Many market experts predicted a recession earlier this year, but stocks surged on the back of AI frenzy. Perhaps investors were correct since the economy stayed red-hot. However, Wall Street is starting to worry that higher interest rates may finally tip the economy into a recession. - “…the economy remains resilient, meaning the Fed will remain restrictive, yields will likely keep rising and stocks will continue to decline,’” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “Eventually, the higher-for-longer environment will cause something to break.” We will receive new inflation data this week, so it will be big for traders to determine whether a rate hike is possible in November. And of course, traders will watch for any potential escalation in the Hamas-Isarel conflict.  The “Greatest Business Secret” Compounds Its Growth By 20%-Plus Almost Like Clockwork Today’s Stock Pick: Primerica, Inc. ([PRI]() I was chatting with a former CEO of an insurance agency on the West Coast. (He’s now a consultant.) And he pulled me closer and said: “Listen, I’m going to tell you something. Insurance is the greatest American business secret.” He explained that almost everybody “ooh’s, ahh’s” at the software industry with recurring revenue streams. But so few people realize how phenomenal insurance agencies are at creating a recurring revenue business. Here’s why: The industry usually has a 90%-plus retention rate. And here's an even better thing: Customers usually stay with an agency for decades. Think about this. You’d get life insurance under an agency, and you would set up an automatic payment and forget about it for decades. Can you think of an industry with a two-decade worth of recurring revenue? Hardly so. Warren Buffett, an obsessed collector of “best of the best” businesses, understood this and immediately fell in love with insurance when he was 20 years old. He put 50% of his net worth in GEICO when his mentor Ben Graham was the chairman of the company. And of course, Berkshire Hathaway eventually became the second-largest insurance underwriter in the country. Today’s stock pick is an insurance agency, and I’ll reveal why it also has the same incredible returns that would deliver high and steady returns to your portfolio. Primerica, Inc. is the number two issuer of term life insurance coverage in North America. It had $917 billion of total face amount of insurance by the end of 2022. Plus, it recently issued over $103 billion worth of insurance in a single year. (Source: Primerica) Through the steady growth of face amount of term life insurance, Primerica has generated close to 20% EPS CAGR since 2016: Trailing quarterly EPS since 2009 (Source: MacroTrends) Best of all, Primerica is shareholder-friendly where it allocated its adjusted operating earnings to shareholders through a combination of share repurchases and quarterly dividends. Do you like dividends? Then you would love Primerica because its dividends per share grew 538% -- from $0.39 to $2.49 in ten years! TTM Dividend Payout since 2012 (Source: MacroTrends) As a result of share buybacks and dividends, shareholders have enjoyed a 49% total return since 2017. And here’s one more financial metric. Primerica has generated close to 20% or better ROE annually, year in and year out. It means that any $1,000 invested in the business would return $200 in profit. That’s an enviable metric! With this ROE metric, you can easily see how Primerica compounded its growth steadily over the years: (Source: Primerica) You love this constant growth, don’t you? And you will not need to pay through the nose for the stock. Your risk is small because Primerica is trading at only trailing 15 P/E. Bottom line: The stock is a textbook case of why the ex-CEO told me that insurance is the best-hidden secret in American business. You can own a compounding machine that will only get bigger and bigger. You can invest in that stock and realistically see your dividends grow to a yield of 10%+ in a decade. This is the ultimate buy-and-hold stock   [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](     © All Rights Reserved, Trade Alliance  If you no longer want to receive these messages, you may [click here]( to unsubscribe.