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Below the Quote on The Influence of Global Geopolitical Events on Financial Markets By Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital

Recent global developments, including escalating tensions in the Middle East and the conflict between Russia and Ukraine, have raised concerns about their impact on financial markets worldwide. Investors are closely monitoring these events to understand how they might affect key financial indicators such as crude oil prices, gold prices, and stock markets, and to adjust their investment strategies accordingly.

Crude Oil Prices:

The volatility in the Middle East, coupled with Iran's involvement in regional conflicts, has heightened fears of further escalation. This has direct implications for crude oil prices, as the region is a major oil producer. Speculation suggests that Brent crude prices could surpass $100 per barrel.

However, recent declines in crude oil prices, such as the 3% drop to below $89 per barrel on Wednesday, can be attributed to rising US oil inventory and expectations that the White House's stance on certain geopolitical issues may help de-escalate tensions.

Gold Demand:

Gold prices have surged recently, driven in part by China's increased gold purchases following certain global events.

Additionally, individual Chinese investors are turning to gold as a safe haven amid uncertainties in other investment options.

Despite this, gold prices may see a decline from their record highs due to profit booking and expectations of reduced geopolitical tensions in certain regions.

Global Economy:

Despite regional conflicts, the global economy has shown resilience, characterized by strong growth and decreasing inflation. While there is a risk of escalating crude oil and commodity prices, the limited impact of the Ukraine-Russia conflict on commodity prices suggests that any effects may be temporary.

Stock Market Investments:

Global stock markets have experienced mixed performance recently. Factors such as positive openings in Asian markets, modest gains in US index futures, and hopes of reduced geopolitical tensions have contributed to market optimism.

However, concerns such as hawkish remarks by the US Federal Reserve, rising US bond yields, and uncertainties surrounding geopolitical tensions have led to market volatility. It is advisable for investors to remain cautious and focus on supernormal companies at supernormal prices.

Investment Strategy:

Investors are advised to carefully consider the criteria for supernormal companies. While traditional market favourites may be overvalued, opportunities exist in sectors such as banks, power infrastructure NBFCs, and IT companies. It is advisable to focus on companies which comply with the Scientific Investing Framework. These are companies with strong balance sheets, persistent competitive advantages, exposure to large TAMs and fast growth vectors. Most importantly, these are companies available at a significant discount to their intrinsic values.

In conclusion, while geopolitical events can have significant short-term impacts on financial markets, the long-term outlook for the global economy remains positive. Investors are encouraged to stay informed, exercise caution, and focus on supernormal companies at supernormal prices for long-term investment success.

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