"A U.S.-Iran war could be a tailwind for equities"

Eisman: "Won’t change my investment strategy"

Steve Eisman, the investor best known for the film 'The Big Short,' said in connection with a potential U.S.-Iran war that investors need not overreact to short-term shocks and that it could be positive for markets over the longer term.

On the 2nd (local time), when asked on CNBC whether he would change his investment strategy because of the conflict, Eisman said, "I won’t change a single trade." He added, "I think it’s very positive in the long run," noting that "people are reacting to the current situation and oil prices have clearly risen, but if things unfold smoothly, two months from now asset prices will return to their prior levels."

While New York stocks saw significant volatility that day, some analysis also suggested that historically, geopolitical clashes have had little long-term impact on the stock market. According to Barclays’ trading desk, since 1980 the S&P 500 has, on average, shown virtually no change the day after major geopolitical events. Other studies have likewise found a tendency for stock prices to recover within a month after the outbreak of a global conflict.

New York = Park Shin-young, correspondent nyusos@hankyung.com