Equity Markets See Iran War as Short-Term Phenomenon, Morgan Stanley’s Shalett Says

Morgan Stanley WM CIO Lisa Shalett warns that markets are underpricing risks from the Iran war and that it may take upcoming quarterly earnings to force a proper re-pricing. Portfolio managers should expect earnings season to reveal company-specific exposure and trigger sector- or name-level volatility as investors reassess geopolitical risk.

Analysis

Morgan Stanley WM CIO Lisa Shalett warns that markets are underpricing risks from the Iran war and that it may take upcoming quarterly earnings to force a proper re-pricing. Portfolio managers should expect earnings season to reveal company-specific exposure and trigger sector- or name-level volatility as investors reassess geopolitical risk.