New York, Mar.28 (SANA) Nearly one month after the outbreak of the U.S.-Israeli–Iranian conflict, global financial markets are undergoing one of their most volatile phases since the global financial crisis, amid sharp fluctuations that have pushed portfolio managers to scale back their positions and search for any available safe haven—even if limited.
According to Asharq al-Awsat, Wang Yabi, fund manager at Shanghai-based “Ziji Fund,” said that the significant decline in Chinese equities prompted him to reduce his portfolio exposure to around 30%, stressing that he does not intend to add new positions amid volatility impacting all asset classes, from equities to oil, bonds, and gold.
He added: “When uncertainty prevails, you reduce your holdings to sleep more comfortably.”
The war, coupled with the effective closure of the Strait of Hormuz, has triggered an unprecedented wave of volatility. Gold, traditionally considered a safe haven, recorded its largest monthly drop since 2008, falling by nearly 16%. Meanwhile, U.S. Treasury yields climbed by about 46 basis points, marking the sharpest jump since October 2024.
Rajiv De Mello, Chief Investment Officer at “Gamma,” stated that safe options have become extremely limited, adding: “The dollar has emerged the preferred asset; currencies, gold, and silver no longer provide the required protection.”
Asian markets experienced significant strain, with South Korean equities declining by around 13% over the past month, and Japan’s Nikkei index losing about 9%. U.S. stocks recorded a milder decline of around 6%, making them a partial option for investors seeking relative stability.
In Singapore, Kenneth Goh, Head of Private Wealth Management at UOB Kay Hian Bank, stated that the war has imposed unprecedented pressure on portfolio managers, who are now forced to monitor markets around the clock and take swift decisions to avoid losses.
He warned: “Any mistake under these conditions could be extremely costly.”
Analysts believe that the continuation of the war will further destabilize markets, particularly given its direct impact on oil prices and borrowing costs. Mukesh Dev, Chief Investment Officer at “Aravali,” said the current tensions are comparable to previous financial crises, though it remains unclear whether they will surpass them in severity, prompting investors toward cash liquidity as the safest refuge until the trajectory of the conflict becomes clearer.
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