Blain’s Morning Porridge 16th March 2026 – Market Sentiment will Tumble on Unwinnable Wars

“This is not Franklin Delano Roosevelt we’re dealing with here”

Suddenly global markets are reeling – waking up to the reality of the unwinnable Iran War. What will a dramatic shift in sentiment mean for stocks, bonds and commodities as stagflation beckons, and Trump finds himself isolated? There is a growing risk of a liquidity shock to global markets. 

Did you feel the moment the wind changed over the weekend? The strum et drang of markets are now being driven by fears of what increasingly looks an unwinnable war in Iran. The big issues are sentiment and consequences. Markets had generally been positive, constructive and bought into expectations of US growth, earnings and the AI boost. Now they fear stagflation, rising rates, slowing demand, supply chain shocks – and a rising concern on just how much the US mid-term elections may destabilise markets further, especially if Trump is hammered in the polls!

The consequences of Trump’s attack on Iran on stocks, bonds and the global economy look bleak – and the risk is a crisis triggered by liquidity flight!  Personally – I’m back to all-in on Gold.

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