Bank of America believes that the bull market in emerging markets is solidly based, and the duration of the conflict will determine the flow of funds.

Bank of America Securities strategist said that even though the conflict in the Middle East has disrupted risk assets, investors have not lost confidence in emerging markets. Strategists, including John Morris, wrote in their report that before the outbreak of the Iran war, developing countries were at the "peak of investor optimism," and despite the escalating tensions at that time, funds flowing into Eastern Europe, the Middle East, and Africa stock markets still reached record levels. Strategists pointed out that this created a "massive base" for potential liquidation triggered by a prolonged conflict, as rising energy prices threatened the global economy. However, everything depends on the duration of the war. Morris and his colleagues believe that if the conflict can be resolved quickly, it may reaffirm optimistic expectations for emerging markets. They added: "At least so far, investors do not seem willing to abandon their positive structural views."