Why The Market Reaction to Israel’s Bombing of Iran is an Overreaction

It may seem strange to say that Friday’s reaction in crude oil to the escalation in the conflict between Israel and Iran is an overreaction, but if you can step back from the fact that Israel launched what looks like a successful bombing raid from their perspective, and Iran is retaliating with drones, the market move probably is way overdone. I have said before that traders are, in some ways, similar to talk radio hosts. They follow the news so intently that in their minds, the impact of everything gets exaggerated. When you have been waiting…