economy
March 11, 2026
One Global Strategist Sees a Market Correction Resulting from Iran War Fallout. Where to Hide
A variety of risks in an equity market near all-time highs make it difficult to decide where to go.
TL;DR
- The stock market is near all-time highs, but investors face risks due to geopolitical tensions and high valuations.
- President Trump's remarks on the Iran conflict caused market volatility, with some investors remaining skeptical.
- The VIX, a measure of expected volatility, remains elevated.
- Some analysts believe the naming of Khamenei's son as the next Iranian leader suggests a prolonged conflict.
- Concerns over stagflation, high equity valuations, and private credit health lead some experts to advise reducing equity exposure.
- Defensive strategies include focusing on energy and health care stocks, and investing in shorter-duration Treasurys.
- One strategist predicts a market downside of 15% to 20% before a potential recovery.
- Another strategist upgraded equities, viewing the worst fears of an Iran oil spike as behind investors, and prefers Asian and European markets over the U.S.
- Software stocks are identified as a potential buying opportunity after a recent selloff.
Continue reading the original article