3 Market Segments I'm Targeting When Iran War Ends

Grassroots Trading2.78K FollowersFollow5ShareSavePlay(12min)CommentsSummaryIWM offers broad exposure to small U.S. companies most sensitive to oil price shocks and poised for a strong rebound if Middle East tensions ease.Rising fuel costs from the Iran conflict have pressured consumer discretionary stocks, and the sector is down over 6% since the war started.Airline stocks have been hit with two big negatives from the war – rising fuels costs and lower travel demand.A peace dividend scenario could rapidly boost margins and demand for some industries, with small caps, discretionary companies, and airlines set to benefit the most. Diamond Dogs/iStock via Getty Images Thesis The conflict with Iran has pushed oil prices above $100 per barrel, with some spikes going even higher in recent days. Rising fuel costs have weighed most on airlines and travel. Meanwhile, oil and gas firms have held up better.This article was written byGrassroots Trading2.78K FollowersFollowI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclosure: I/we have a beneficial long position in the shares of IWM either through stock ownership, options, or other derivatives. 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.