Geopolitical Risk Rises

Small wonder that the markets closed down for the day and the week.Yes,there were disappointing economic reports.Existing home sales and durable goods orders were down,while new home sales were up,but below expectations.Besides all this,however,tensions with Iran over its nuclear program are mounting;the Afghan war is going badly;and the first al-Qaida cell in the U.S. since 9-11 has been uncovered.Geopolitical risk is again a factor investors and businesses must take a hard look at before making a decision.BP has already stopped selling fuel to Iran in anticipation of tougher sanctions being imposed on the country.Defensive measures haven't looked this appealing in some time.