Shiite rebels, known as Houthis, hold up their weapons to protest against Saudi-led airstrikes, during a rally in Sanaa, Yemen. (AP Photo/Hani Mohammed, File)
Shiite rebels, known as Houthis, hold up their weapons to protest against Saudi-led airstrikes, during a rally in Sanaa, Yemen. (AP Photo/Hani Mohammed, File)

Even before the Gulf struck, Yemen was suffocating



Any announcement of military action usually brings out the armchair generals and the armchair pacifists. Both have made their appearances on television networks and social media since fighter jets began bombing Houthi targets in Yemen.

Criticism of the decision to assemble an anti-Houthi coalition has ranged from the suggestion that Saudi Arabia was interfering in the affairs of its neighbour, that the military attack would embroil Egypt in another prolonged conflict (memories of its 1963 war in Yemen all over again), to the rather outlandish argument that the Houthis represent a popular revolution.

But critics of the Gulf’s military action in Yemen have to answer one question: what was the outlook for Yemen’s future at one minute to midnight last Wednesday?

It is certainly true that, at midnight when Saudi Arabia’s fighter jets began bombing raids, the trajectory of Yemen’s post-revolution transition changed. Indeed, I suspect we will look back at that moment as the beginning of a new phase of Arab intervention.

But the question the critics have to answer is on what trajectory was the transition before?

Because the political outlook on Wednesday was certainly not positive. The GCC-backed transition, imperfect though it was, at least provided a road map. It certainly provided a more consensual approach than that offered by a militia from Yemen’s north. There was, let’s be clear, no Houthi prescription for Yemen’s people, only a power grab.

Military intervention is hard. Reshaping a political landscape with explosives always creates unintended consequences – and concealed behind the politician’s phrase “unintended consequences” is a reality of broken bodies and destroyed buildings.

Yet military action is sometimes necessary to stop something worse: the slow suffocation of a country leads to an inevitable consequence. The idea that military action is always and everywhere wrong is a dangerous fallacy.

In particular, in Yemen, it ignores the fact that the Houthi takeover was, in itself, a military intervention.

It may have taken longer, it may have been framed in terms of “popular legitimacy”, but the principle was the same. A small group was seeking to undermine the political framework of the transition, and doing so without any oversight or legitimacy.

With or without the Saudi intervention, the political transition of Yemen was being altered.

Remember that the Houthis entered Sanaa by force of arms – they were not carried there by the popular will of the people. It was not the Yemeni people who installed Mohammed Al Houthi in the republican palace in Sanaa in February – it was the guns of his militia.

The dissolution of parliament, the arrest of the president, the forming of a new ruling committee – none of these were done in consultation with anyone but the Houthis themselves.

It is right to question military action, but criticising the military action as changing the direction of Yemen is rather like beginning a football match commentary at half-time. The game was already in motion.

Critics of the intervention are only looking at the situation at the moment and ignoring the context of how we got here. In particular, they are ignoring the alternative trajectory – what would have happened had the Houthi advanced been allowed to continue.

Because the Houthi’s march to Sanaa, their takeover of the capital, and then their march south through Taez towards Aden was not to enforce the popular will of the Yemeni people, it was to pressure Abdrabbu Mansur Hadi into capitulating to their demands.

How, precisely, was the “popular will” of Yemen served by bombing Mr Hadi’s home in Aden? How would Yemen’s post-revolution transition be facilitated by Mr Hadi’s assassination?

Were the Gulf states meant to sit back and watch as a militia backed by a regional rival set about dismantling the transition plan they drafted?

Because that is what the situation in Yemen looked like at one minute to midnight on Wednesday. The choice in Riyadh was to either let that scenario play out, or seek to alter it to something better.

No one can predict the progression of a war. But Yemen’s transition was being choked last week. With planning, with political will, and with a lot of luck, it may just have a chance to breathe again.

falyafai@thenational.ae

On Twitter: @FaisalAlYafai

COMPANY PROFILE
Name: Airev
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Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
COMPANY PROFILE
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Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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What should do investors do now?

What does the S&P 500's new all-time high mean for the average investor? 

Should I be euphoric?

No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.

So what happened?

It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.

"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."

Should I buy? Should I sell?

Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.

"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.

All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.

Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.

Will the rally last?

No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.

"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."

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