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Investors reacted to the initial tensions between Israel and Palestine in the same way as in other conflicts - betting on safe-haven assets such as gold, the US dollar or Treasury bonds, to the detriment of riskier equities.
"What surprised us is that this movement was quite fast. The following day, the stock exchange was already above previous levels and bonds were recovering," explains Javier de Berenguer, investment manager and fund selector at MAPFRE Gestión Patrimonial (MGP).
The only assets that are quoting at the same or higher levels than the day the conflict broke out are gold and oil, and it’s precisely in the latter that De Berenguer perceives the greatest risk. Since October 7, the day of the Hamas attack on Israel, Brent crude oil (a...
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