V2 Newsletter October 14 2023 Update

Recap

Market participants entered the week with news that Israel declared war on Hamas after a surprise attack launched by Hamas last weekend. The potential for a wider regional clash weighed on sentiment this week, but reports so far give the impression that the Israel-Hamas war is still a two-party conflict.

Geopolitical angst mounted on Friday following news that Israel warned 1.1 million residents in the northern Gaza Strip to evacuate within 24 hours, which is presumably a pretense to a ground attack in Gaza that will escalate the war. That created some nervousness in the market, which also heard Iran's foreign minister say that Israel's continued siege of Gaza "will face reactions in other areas."

The stock market still fared okay this week, aided by a decline in Treasury yields and some technical buying interest related to the idea that the market was oversold and due for a bounce. Gains were registered in the first half of the week, but buyer conviction fell by the wayside as it got closer to the weekend.

V2 was up slightly this week.

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