Investors should remain “cautious and consistent” as Iran retaliates against the U.S. for killing one of its most revered military generals.
The message from Nigel Green, founder and CEO of deVere Group, comes as global financial markets roil on the news that an Iranian rocket attacked U.S. forces based in Iraq.
Mr Green comments: “Geopolitical tensions are certainly heightening, and this always creates uncertainty – something which markets typically loathe as it becomes more difficult to know where things are headed. In other words, they can’t price uncertainty.
“In many regards, the U.S.-Iran situation has now surpassed the U.S.-China trade war as the biggest risk to financial markets. This has been reflected in the current volatility.”
He continues: “Investors must, of course, monitor the U.S.-Iran situation, what has led to it and where it might play out.
“They need to ensure that their portfolios are properly diversified by geography, industrial sector and asset class in order to manage risk, to navigate the increasing volatility and also to take advantage of potential opportunities when they arise.”