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

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.