Bow to the Kingdom

Five years ago, Western CEOs turned their backs on Saudi Arabia after its assassins, at the direction of the young Crown Prince, murdered and dismembered journalist Jamal Khashoggi inside the kingdom’s Istanbul consulate.

Times have changed, and memories are short.

Saudi Arabia is flush with cash — its state oil giant generated $161+ billion in profit in 2022 alone — just when Chinese sources have run dry. From Wall Street to Silicon Valley, anyone looking to raise capital puts Riyadh at the top of its travel plans.

Geopolitics is also a primary concern: Israel and Gaza, China and Taiwan, US politics, and many other powder kegs globally.

Larry Fink, BlackRock’s big boss, warned of a dangerous spiral resulting from the unfolding horror in Gaza.

There’s no question if these things are not resolved, it probably means more global terrorism, which means more insecurity, which means more society is going to be fearful, less hope and when there’s less hope, we see contraction in our economies.

Energy markets are responding.

And these upticks were before the full effect of what looks like an emerging regional war.

Good times ahead.