An Important Global Investment Opportunity, Based Upon an Iranian Nuclear Deal.

An Iranian nuclear deal provides significant upside, in my opinion, resulting from successful implementation of an Iranian nuclear deal. I consider the deal as potentially being accretive, possible by as much as 5% over the course of the next 24 months, for the entire US equity marketplace.

The reversion of a former ally, which was then an enemy, has been drawn into what may be possibly an ally status once again profoundly shifts the geopolitical map of the globe. Prior to 1979, Iran was a staunch ally and the Shia based regime was considerably more forward thinking than their Sunni counterparts, which globally remain continually beset with petty tribal feudalism.

As a result of an Iranian deal, Russian status is diminished; their oil revenues and defense revenues, both critical to fund Russian belligerence is reduced in the potential loss of a market and a reliable supplier of high quality crude to world markets. In contrast, American and European status is enhanced. There will be more geopolitical certainty and investment markets typically thrive under periods of certainty.

In the near to mid-term, perhaps the most compelling investment ideas will come in the refining and petroleum marketing companies. With an ability to source more supply, at potentially attractive prices, margin capture rates should be further enhanced. The global large cap portfolio currently holds Tesoro Corp (TSO-NYSE, $100.28). A small-cap refiner that has potential to rise to mid-cap status, based upon a recently announced acquisition, is PBF Energy (PBF-NYSE, $31.92). This pure refining play, in my view, seems overlooked.