Trump’s delay of air strikes on Iran sparked a market rebound, but investors remain cautious amid ongoing uncertainty. Hedge fund and asset managers maintain reduced risk exposure, hedges, and high cash levels, citing fragile relief rallies driven by hopes of de-escalation rather than fundamental change. Analysts recommend light, flexible positioning and waiting for clearer signs from Iran, noting headline-driven trading remains risky. The prevailing strategy is to buy on escalation and sell on

Trump’s delay of air strikes on Iran sparked a market rebound, but investors remain cautious amid ongoing uncertainty. Hedge fund and asset managers maintain reduced risk exposure, hedges, and high cash levels, citing fragile relief rallies driven by hopes of de-escalation rather than fundamental change. Analysts recommend light, flexible positioning and waiting for clearer signs from Iran, noting headline-driven trading remains risky. The prevailing strategy is to buy on escalation and sell on de-escalation, while closely monitoring oil prices and Fed signals.