This War Is Wall Street’s Jackpot — But It’s a Trap for You

June 16, 2025

Missiles fly, and the headlines focus on the explosions.

But while most Americans brace for what’s next, Wall Street is cashing in on the fear — and laying the groundwork for a crisis that will hit ordinary investors hardest.

The Jackpot Phase

Every war starts the same way for markets:

  • Oil prices spike as supply fears grip traders.

  • Defense stocks surge — war always feeds the war machine.

  • Gold jumps as a quick hedge against the unknown.

  • The dollar rallies — for now, as the world scrambles for safety.

Wall Street knows how to ride the first wave. Their playbook hasn’t changed.

Oil at $130 is the level that helped trigger the 2008 slowdown. We’re getting dangerously close.

The Trap Phase

Here’s where the story turns — and where most investors get caught.

What looks like a boom turns toxic:

  • Sustained oil shocks slow growth — inflation sticks, recession risk rises.

  • Ballooning defense spending fuels deficits — eroding long-term confidence in the dollar.

  • The dollar’s strength fades as the real costs of war pile up.

  • Wall Street exits quietly — retail investors are left holding the bag.

The first wave feels like safety. The second wave feels like regret.

What to Watch

This play always has a tell. Here’s what signals the pivot is coming:

  • Oil breaks through $130 — stagflation risk becomes undeniable.

  • The bond market starts to buckle under new debt.

  • The dollar’s rally stalls — the world begins to look for alternatives.

The Bottom Line

Wall Street’s making its money now. When the music stops, they’ll already be gone.

Don’t let this crisis play out the same way for you.

—DOTD