Israel’s recent attack to Iran caused a strong leap in the price of oil, lighting alarms on a possible imbalance in the global economy. In this context, investors must act quickly and strategy to protect their capital in the face of an increasingly volatile scenario.
The world is going through a stage of strong geopolitical instability, what is raising the price of oil and increasing the chances of unbalanced the economy of all countries. With which, investors must learn how to protect their money.
On the last day, oil shot up to 18%, although it then retreated until accumulating a rise of 6%, for the attack of Israel to Iran against military and nuclear objectives in a “preventive” way.
Consequently, the crude reached up to $ S77 per barrel and then cooled slightly to US $ 72. But it is getting closer to the highest level of the year. And this is dangerous for all participants in the economy and markets.
“When oil rises, it impacts the economy in general because fuels rise. And if fuels rise, distribution costs upload and, therefore, products”said Mariano Pantanetti, professor of the Advanced Finance Program of the National University of La Plata.
According to the specialist, the rise in costs has a negative impact on assets prices, especially those of risk, which are also being punished by the tendency of migrating investors to safe and stable goods.
Unfortunately, this could only be starting. In fact, from JP Morgan they predicted that the barrel of oil could rise to the range of US $120 if Iran closes the Ormuz Strait, One of the most important for the world’s commodity flow.
What to buy in the current context
Given the situation, the market considers that there are still two financial assets with potential to protect capital: gold and shares of oil companies.
“When there are such political uncertainty scenarios, of risk that there are wars, gold is usually a refuge against those movements. So, investing from Argentina, today you have the possibility of buying the gTA code that can help you protect you from that instability, as a complement to a diversified portfolio,” Matías Daghero, Closing Bell Advisors mentioned.
The specialist referred to the bottom quoted in the stock market (ETF) SPDR Gold Trust, which replicates the behavior of golden metal practically 100%. For this reason, the fund rose 29% in dollars so far this year, such as the raw material.
On the other hand, Miguel Braun, financial advisor in Fox Capital, said that Two good oil companies to add to the portfolio and benefit from the raw rise are YPF and Geopark.
“Geopark is an independent Latin American company, founded in 2002, dedicated to the exploration, development and production of oil and gas. Based in Bogotá, Colombia, it operates in countries such as Colombia, Ecuador, Brazil, Chile and Argentina. It focuses on sustainable growth, operational efficiency and socio -environmental responsibility, managing assets in hydrocarbons with a business model that integrates innovation, security and commitment to local communities”the executive explained.
Then, he talked about the Argentine Iconic: “Basically, YPF has an attractive, very potential valuation, good management and new infrastructure works that are coming. And added to that, the expansion of the pipeline that goes from Allen to Puerto Rosales that was done with the duplicate project of Odelval is already operational that will allow you to transport much more oil and lower costs, because transporting in trucks is much more expensive.”
Source: Ambito
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