Renewed tensions with Iran have flipped the script for traders who bet that geopolitical risks were subsiding. Following a declaration by Donald Trump that the US-Iran ceasefire was “over,” market expectations shifted abruptly.

Marko Papic, chief investment strategist at BCA Research, was forced to scrap a previous investment call at a loss just one day after making it. The shift occurred after Trump's announcement on July 8 in Ankara, Turkey.

Consequently, Papic advised clients to short US stocks and instead buy shares in Europe and Japan. He noted that American equities, which previously provided relative shelter during peak geopolitical tensions, have since lost some of their appeal.