Equities will suffer from war in the Middle East

The US could be seen as a safe haven for both bond and equity investments if the Middle East crisis leads to war. High oil prices combined with the threat of war in the Middle East is already leading global fund managers to be negative on Asian markets and more positive on the US, particularly Treasuries. Richard Urwin, head of strategic research at Gartmore, says: "If it was known for certain there would be a war in the Middle East, investors would look to get out of equities and all equity markets would go down." Nigel Morgan, economic strategist at Old Mutual Asset Managers, agrees: "...