War, Peace & Unlikely Allies

A United Front Against ISIS

Could Send Stock Markets Soaring

James DiGeorgia

The world is starting to awaken to the true magnitude of the brutality and carnage the Islamic State is committing in the name of ethnic and religious cleansing.

It is using mass executions, live burials, assaults, mutilations and beheadings to inflict fear and terror not only in Syria and Iraq, but throughout the world.

Men, women, children … no one is safe from these extremists.

The video-recorded execution of James Foley, an American freelance journalist for GlobalPost.com, was released last Wednesday. It was another in another long list of atrocities committed by ISIS in its effort to establish an Islamic Caliphate that would stretch from Syria through Iraq.

Foley may have been the first journalist executed, but he will not be the last.

Another U.S. journalist held by the vicious terrorist group is being threatened with a reprisal execution unless the United States stands down in its military efforts to arm the Iraqis, Kurds and the Free Syrian Army.

The threat is not going to sway the U.S. military efforts against ISIS.

If you remember the opening days of the Iraq war, al-Qaeda did the exact same thing — kidnapping U.S. citizens and beheading them on video.

The sheer viciousness only served to buttress U.S. military efforts to seek and destroy al-Qaeda terrorists.

However, ISIS brutality is starting to do something remarkable …

Before you break out the champagne …

The S&P soared above 2,000 to start the week. Impressive, right?

Well, not if you look at its performance over the last 14 years. After all, it’s barely up more than 30%. That’s less than 2% in annualized returns.

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It’s uniting the many different and divergent geopolitical powers around the world to combat it.

A ‘Royal’ Response

Last week, the British agreed to deploy Royal Air Force Tornado jets and surveillance aircraft to Iraq for an extended period to stop the advances of ISIS and destroy its forces.

It helped to soften targets around Iraq’s Mosul Dam and the city of Mosul, which helped Iraqi and Kurdish troops accomplish some key victories in the last several days.

Reaction from the Vatican

Last Monday also saw Pope Francis say the world should protect non-combatants, and use the least possible amount of force to do so.

In a Q-and-A session with reporters, the Pope also said the international community — not just one country — should decide how to intervene.

I am a huge fan of Pope Francis, and I have come to love him as if I were a Catholic. His observation that defeating ISIS is going to take the efforts of many nations is spot-on.

The question now is "how."

Will the World Go to War?

In 2013, ISIS forces numbered approximately 6,000. As of today, there is an estimate of over 50,000 ISIS terrorists in Syria alone.

Estimates now put the total number of ISIS forces in Iraq at almost 15,000.

British entry into the conflict is a signal that NATO will likely be the next to enter the effort to combat this radical Islamic terrorist group (followed by a United Nations Security Council sanctioning).

The growing ISIS surge is depleting Russia, Iran and Syria economically and militarily. As a result, Russia is very likely to vote in favor of almost any anti-ISIS issue brought before the U.N. Security Council.

In fact, Vladimir Putin could leverage his cooperation to reverse the damage he has done concerning his relationship with the West over the tug of war that he has been involved with Crimea and Eastern Ukraine.

China, too, is positioned to support any UN action against ISIS that it has the most to lose, in terms of its oil contracts and growing infrastructure investments in Iraq.

In addition, China maintains friendly relations with Iran. Therefore, a veto is not likely to come from the Chinese.

Surprising Support for ISIS …

Make no mistake; ISIS is more than a threat to Syria, Iraq, Turkey and Iran. That’s because it’s receiving support from all over the globe.

Foley’s executioner spoke with a British accent, which makes it impossible to ignore that over 10,000 foreign radical Islamic fighters from Great Britain, United States, Europe and Eurasia have been pouring into Syria and Iraq to join ISIS numbers.

Australian family immigrates to get in on the jihad

An estimated 1,000 British soldiers, 500 U.S. soldiers, 1,000 Turkish soldiers and several thousand extremists from all over Europe and Asia have been traveling to Syria and Iraq to join the jihad being waged by ISIS.

In short, there may be over 10,000+ foreign fighters from all over the world in Syria and Iraq fighting alongside ISIS.

The world community simply can’t ignore this.

In fact, this could become the catalyst for the end of ISIS and the early beginnings of a peaceful settlement for a great many of the world’s current conflicts.

The battle against ISIS is no longer just a Syrian or Iraqi problem. The prospect of thousands of American, British, European and Asia-Pacific ISIS fighters returning to their home countries is FREAKING out those charged with protecting their countries against terrorism.

As the world comes together to confront the brutality of ISIS, the opportunity to negotiate other long-standing conflicts becomes realistic.

The Possibility of Peace … Eventually

In Syria, the battle is draining the Russians; meanwhile the Iranian economy was already suffering under heavy sanctions.

The Western world could find an unlikely ally in Putin, as he may be able to bring Syria’s President Assad to the peace table and gain concessions to redraw the map of Syria so that the Free Syrian armed forces could establish a separate free state.

The Turks are increasingly likely to endorse a free separate Kurdish state. The Kurds have been able to work with the Turks to eliminate long-standing conflicts with Kurdish elements.

Not only have their relations steadily improved, but both the Kurds and the Turks are on the receiving end of ISIS’ threats to their existence.

With some encouragement from Putin, Iran may be persuaded to recognize Israel’s right to exist as a Jewish state in exchange for a comprehensive and non-aggressive pact signed and adhered to by Israel, Syria and Hezbollah.

Hamas’ existence has been endangered by its vocal support for ISIS and its growing alliance between Israel, the Palestinian Authority, Egypt, Saudi Arabia and Jordan.

For the first time in 60 years of the Israeli Palestinian crisis, the door may be opening for a survivable two-state solution.

However, it won’t come until ISIS is decimated.

It may take the decimation of Hamas as well, but I see this as finally being in the realm of possibilities.

A United Front Could Act as a Huge Catalyst for Stock Markets!

Peace Could Pay Off BIG Time!

All of this could be tremendously bullish for the world economy and its stock markets. Even the appearance of the opportunity to move from force to negotiations of the problems facing the Middle East could act as an incredible bullish catalyst for investors.

If we start seeing compromise, negotiation and cooperation emerge where there had been chaos and conflict, we’re going to see investor sentiment skyrocket.

S&P 500 at 2,000, like we saw for the first time yesterday, could be a drop in the bucket.

We could very well see the U.S. stock market rise another 7% before the end of the year.

That would mean Dow 18,000 and S&P 2,125 by New Year’s Eve 2014! To find out how we’re getting positioned for it in my Global Resource Hunter newsletter, simply click this link here.

Always Watching Your Chickens,

James DiGeorgia