Trying To Think Ahead

I do not know whether this business that is starting to percolate in Iran will amount to anything or not. But if you are concerned about it, you should probably act now and buy some things that will go up if Iran escalates into something that hurts the US market.

This idea goes toward building a counter strategy in your portfolio. This typically means a defense company, some gold and maybe an inverse index fund.

In time of market panic, these are the types of holdings that usually go up. Money tends to rotate into US treasuries during times of crisis too.

I do not necessarily think something bad will come from Iran but I don’t know. If you don’t think you can stomach a nasty 2 month period for stocks like we had in October 1997 and August 1998, these are steps you can take now to minimize the impact but still capture most of the upside if Iran turns out to be a non-event.