Analysis: Investors Revert to 2022's "Dump Stocks and Bonds, Hoard Cash" Strategy as Risk Aversion Intensifies

Odaily News To hedge against risks stemming from the Iran conflict, investors are selling off stocks and bonds and increasing their cash holdings once again, mirroring the strategy adopted after Russia's invasion of Ukraine in 2022. Bank of America's latest survey of fund managers this month shows that fund managers' cash holdings have experienced the largest jump in six years. Meanwhile, JPMorgan Chase strategists stated this week that position adjustments in response to the conflict may be far from over. A team led by Nikolaos Panigirtzoglou at JPMorgan noted in a report that as long as geopolitical and macroeconomic uncertainties remain elevated, the current cash allocation, which is still below historical levels, will pose a headwind for future stock and bond markets. Investors have been simultaneously selling stocks, bonds, and gold, preferring instead to increase their cash holdings. However, compared to the period following the outbreak of the Russia-Ukraine conflict, cash levels within portfolios remain at a moderate level. (Jin10)