Iran War Punctures Strategy of ‘Sell America, Buy Asia’

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000War With Iran:The war in Iran is forcing investors to reevaluate one of their most profitable stock strategies, leading some to conclude that the “Sell America, Buy Asia” trade has reached an inflection point. Despite a rebound Thursday, the MSCI Asia Pacific Index has tumbled about 6% this week, compared with a 0.1% slide in the S&P 500. The swing indicates a reversal of a rotation by global funds into Asia and a renewed shift toward the US as a haven, a move also supported by a stronger dollar. Futures on the US benchmark are down less than 0.1% at 6:41 a.m. in New York on Thursday morning.