Day 3

We are now 3 days into Iran War. I want to give you a clear picture of where things stand. No noise, just the facts that matter for you as an investor.

💣 What Has Happened Since.

On 28 Feb, the US and Israel launched Operation Epic Fury. Coordinated strikes across 24 of Iran's 31 provinces. Over 1,000 targets hit in 48 hours. Iran's Supreme Leader Khamenei was killed. So was Iran's military chief and several top IRGC commanders. A full decapitation of Iran's leadership.

Iran hit back hard. Missiles and drones fired across the Gulf region. Dubai International Airport was damaged. The Burj Al Arab was on fire. The US Embassy in Riyadh was struck by drones. A US flagged oil tanker was hit in the Strait of Hormuz. 6 American soldiers have now been killed. (Although likely due to friendly fire)

Trump said the war will last "4 to 5 weeks." He also said the part that every investor should pay attention to. "The big wave hasn't even happened yet."

Secretary Rubio said the same. "The hardest hits are yet to come."

This is not winding down. It is escalating.

🛢️ The Strait of Hormuz Changes Everything

Iran has declared the Strait of Hormuz closed. Tanker traffic has essentially stopped.

Here is why this matters to every single person on the planet. Roughly 20% of the world's daily oil supply passes through that narrow stretch of water. China gets half its crude imports through it. Japan and South Korea are heavily dependent on it too.

Oil surged over 13% on Mon to around $82 per barrel. Highest level in over a year. If the closure holds, analysts are warning of $100 oil. That feeds directly into inflation. Which means the Fed cannot cut rates. Which hits everything in your portfolio.

"Venezuela was a production story. Iran is a chokepoint story." 👆 The picture above says it all.

🥇 Gold Has Crossed $5,300

Gold surged from $5,100 to over $5,300 in a matter of hours when the strikes began. One of the biggest single session moves in years. J.P. Morgan has now raised their gold price target to $6,300 per ounce by end of 2026.

Gold just wrapped up its 7th consecutive monthly gain in Feb. Longest streak since 1973. And this war just poured jet fuel on a rally that was already well underway.

I have been saying for months. Gold is your insurance policy. Those who had it are sleeping much better this week.

📊 What Markets Did On Monday

US stocks initially dropped over 1% at open but recovered through the day. S&P 500 ended barely in the green. The Dow closed down only 73 points after being down nearly 600 earlier. That recovery is actually a signal. Big money is not running for the exits. They are rotating.

What went UP: Energy stocks like Exxon and Chevron up 3 to 5%. Defense names like Lockheed Martin up 2 to 3%. Gold miners.

What got HIT: Airlines down 4 to 8% on fuel cost fears and closed airspace. Small caps. Higher risk tech.

This rotation is textbook wartime market behaviour. The question now is how long it lasts.

Pete's Take 🛡️

Three possible endings. One, short conflict of 4 to 6 weeks, Strait reopens, oil retreats, markets recover fast. Two, medium conflict, Strait stays disrupted, oil stays elevated, inflation returns, rates stay higher for longer. Three, Iran's new leadership negotiates and a ceasefire happens sooner than expected. Trump has already hinted Iran's new leaders want to talk.

Right now we are in the eye of maximum uncertainty. And maximum uncertainty is exactly when prepared investors find the best opportunities. The key is knowing what to buy, what to hold and what to avoid.

🎓 I'm Launching a New Course This Thu

This is precisely why I am launching Dividend Market Genius (DMG) this Thu 5 Mar and doing a live webinar to walk you through it.

In times like this, wars, oil spikes, volatile markets, dividend investing becomes one of the most powerful strategies you can have. You get paid while you wait. Your income stream does not stop because the world is on fire. And you learn how to identify the exact companies that thrive in environments exactly like this one.

At the webinar I will also be sharing a one time promotional launch price that will not come back after the session. This is it.

🔗 Register here: us06web.zoom.us/meeting/register/-0S3gqGqQlCACdVBwr--9A

Stay sharp. Stay calm. The world is uncertain but your portfolio does not have to be. 💹

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.