On Friday, US stocks ended the day higher with the Dow and NASDAQ gaining more than 300 and 120 points respectively. The gains were mostly because of Apple, which reached an all-time high of $184. This came as Warren Buffet announced that his firm had increased its stake in Apple by more than 75 million shares. A purchase by Buffet increased the confidence investors had in the company. Every year, the Oracle of Omaha will receive more than $700 million from Apple dividends alone.
During the weekend, thousands of investors gathered in Omaha, for the annual general meeting of Berkshire Hathaway. This is one of the most common events in the investment community where investors go to listen from one of the best investors of all time. They also listen to words of wisdom from his protégé, Charlie Munger who has been his investment partner for decades.
Another focus among the investment community was on the Iran deal. Here is a short recap on the deal. For decades, Iran has been accused by the West of increasing its influence in the Middle East. It has achieved this by sponsoring terror groups like Hezbollah and by opposing the Western influence. Its armed forces have been accused of killing many Western armed forces.
For decades, fearing that the West would invade – like it did in Iraq – the Iran regime started developing nuclear weapons. This was against the UN policy that banned countries from engaging in an arms race. To help stop the development of these weapons, the Obama state department joined forces with other countries like Russia, United Kingdom, China, and France. They came up with the Iran deal, which is formally known as the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran deal.
The deal removed Western sanctions from Iran on the promise that the country would halt the nuclear development.
This Saturday, the American president will have a deadline on certifying or decertifying the Iran deal. By certifying the deal, it will mean that Iran is complying with the deal while decertifying it will mean that the country is not complying.
It is widely expected that if the US decertifies the Iran deal, it will mean that Iran can also abandon its commitments from the deal. In other words, it will start developing nuclear weapons.
This confusion comes a few weeks before the scheduled meeting between the United States and North Korea. Like the Iran deal, the meeting will be intended to end the nuclear programs from North Korea. As such, an exit from the deal by the United States from the Iran deal will mean that the US should not be treated as a trusted ally.