Risk aversion is rising, and investors are once again adopting the strategy of "abandoning stocks and bonds, hoarding cash" in 2022.

In order to avoid the risks brought by the Iran war, investors are selling stocks and bonds, increasing their cash holdings, a strategy reminiscent of the outbreak of the Russia-Ukraine conflict in 2022. The latest survey of fund managers by Bank of America this month shows that cash holdings of fund managers have seen the largest increase in six years. Meanwhile, J.P. Morgan strategists stated this week that position adjustments made in response to conflicts may not be over yet. A report from the J.P. Morgan team led by Nicholas Panagiotoglou stated that as long as geopolitical and macro uncertainties remain high, the current historically low cash allocations will have adverse effects on the future stock and bond markets. Investors have been selling stocks, bonds, and gold simultaneously, preferring to increase their cash holdings. However, compared to the outbreak of the Russia-Ukraine conflict, the level of cash in investment portfolios is still at a moderate level.