Forget Iran; Bessent Gave Us 1 Trillion Reasons To Buy

James Foord Investing Group Leader Follow Summary The Treasury's expanded secondary sanctions on Iran are overshadowed by its plan to fund buybacks from the TGA, shifting liquidity dynamics. Market reactions to 'Operation Economic Outcast' were muted, with Brent crude falling and equities flat, signaling the Iran risk is already priced in. TGA-funded buybacks represent a stealth QE, injecting liquidity and supporting long-duration assets, while posing risks if fiscal credibility falters. Gold, Bitcoin, and commodities stand to benefit from a weaker dollar and potential liquidity-driven asset rallies. Looking for more investing ideas like this one? Get them exclusively at The Pragmatic Investor. Learn More » Dmytro Lastovych/iStock via Getty Images Thesis Summary The Treasury unveiled "Operation Economic Outcast" on August 24, expanding secondary sanctions on Iran across shipping, oil, crypto, gold, technology, aviation, and many other areas. However, on the news, Brent actually fell, while the S&P 500 closed down 0.28% at 7,652.86, roughly 2% from This article was written by James Foord 29.52K Followers Follow James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.