Oil and oil-related stocks were trading more than 3% lower on Monday after Israel’s response to Iran played out over the weekend. The drop comes as analysts and political pundits are now forecasting that Iran won’t step-up their actions in the region.
This means that oil prices will start to see the “war premium” slowly seep out of their prices over the next few weeks. Sure, we’re going to see continued volatility, but I’ve got a rule that every single investors needs to be aware of in these situations…
We’ll get into that in a minute. Let’s break this down for you and let you know what you should be buying instead.
This post originally appeared at Money Morning.