Markets have fully absorbed the selling pressure associated with the recent conflict involving Iran, effectively erasing the entire drawdown experienced during the heightened geopolitical tensions. This reversal signals strong underlying confidence among investors who appear to be dismissing the immediate threat posed by the situation in the Middle East.

News originating from the Odd Lots universe suggests a swift return to pre-conflict valuations across various asset classes. Such a rapid recovery implies that traders discounted the initial reaction or that corporate fundamentals remained resilient despite the perceived military escalation.

Investors exhibiting this collective amnesia regarding geopolitical risk are now focusing on other drivers, such as domestic earnings or monetary policy expectations. The speed of the rebound, erasing the entire dip, provides a clear indication of current market sentiment toward regional instability.

Observers tracking the Jakarta Stock Exchange saw activity mirroring this global sentiment shift, as evidenced by the scene captured on April 18, 2019. Geopolitical risk premium has vanished from equity pricing for now.