Ever since 1979, when a militant theocracy seized power in Iran, that former U.S. ally has been our bitter enemy. In the current economic recovery, Iran’s belligerence has been the single most important factor creating the persistent 30 percent “anxiety discount” in U.S. equity markets. More significantly, foreign policy experts around the world are now coming to realize that Iran’s zealous pursuit of nuclear weapons will not yield to conventional incentives. Why? Because the Iranian leaders believe they are literally “doing the will of Allah.” This belief system puts Iran and a U.S.-led coalition on an inevitable collision course. How will the situation play out? What will it mean for you and your investments? We’ll provide some answers.
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