Iran's central bank chief announced the country will join the BRICS New Development Bank. This happened while Iran is at war with the United States. Those two facts appeared in the same headline, which means someone thought they belonged together.
The BRICS New Development Bank sounds like something a middle schooler invented for a social studies project. Brazil, Russia, India, China, South Africa. They made a bank. It has existed since 2015. You didn't know that because it doesn't matter.
Iran wants to ramp up economic alliances while actively fighting a war with the country that controls the global reserve currency. That's like joining a gym while your house is on fire. Sure, those bench press gains will really pay off once the flames reach the second floor.
Retail traders saw this headline and immediately opened their brokerage apps. They typed "BRICS" into the search bar. Nothing came up. They tried "Iran ETF." Still nothing. They settled for buying more Tesla calls because at least that ticker symbol autocompletes.
The central bank chief made this announcement on a Thursday, which is the international day for saying things that sound important but change nothing. He probably flew home feeling accomplished. His country is in a shooting war with a nuclear superpower, but at least they secured that New Development Bank membership card.
Technical analysis works the same whether Iran joins this bank or starts a book club. The 50-day moving average does not care about geopolitical alliances between countries whose combined economic output equals one decent quarter for Apple. The chart moves. You draw lines on it. The lines mean nothing. Iran's central bank chief just proved he understands this better than you do.
Photo by on Unsplash
Leave a Comment