What Does the Iran Conflict Mean for Markets

UBS anticipates a diplomatic solution to the US-Iran conflict and suggests investors use current market highs to rebalance portfolios and diversify away from concentrated US tech holdings.

Key Takeaways

• 1.The base case remains a diplomatic solution between the US and Iran, despite a current stalemate and 'bumpy' process.
• 2.Recent market strength, driven by big US tech and strong earnings, provides an opportunity to rebalance portfolios to manage concentration risk.
• 3.A ceasefire between the US and Iran has lasted 41 days as of May 18, exceeding the duration of previous military action.

Table of Contents

• Key message
• 01 Diplomatic efforts continue between the US and Iran, with investors encouraged by a continued ceasefire.
• 02 But hurdles remain to a sustainable peace, with the potential for renewed escalation.
• 03 With uncertainty still elevated, investors can use the recent strength of equities to rebalance portfolios.
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• Non-Traditional Assets
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