BofA’s Hartnett Sees European, Japanese Stocks at Risk From War

A prolonged Iran war is a risk to the bank-stock powered rallies in Japan and Europe as investors abandon these markets in favor of exposure to oil and the US dollar, Bank of America’s Michael Hartnett said.

Investors are likely to shift to assets that are “beneficiaries of extended conflict,” at the expense of “oil importers with minimal energy equity exposure,” such as Korea, Japan and Europe, the strategist said. US technology and global defense are among sectors that could gain during this rotation.