Grind lower trades are gaining traction on Wall Street as the Iran war enters its fifth week, according to Bloomberg Markets. Strategists at major banks are positioning portfolios to profit from a gradual, sustained decline in stock prices rather than a sudden crash. This approach reflects growing concerns that prolonged geopolitical tensions could drag markets downward incrementally, creating opportunities for investors betting against major indices.

The strategy involves selling derivatives like put options or shorting exchange-traded funds, which pay off if markets remain stagnant or decline steadily over weeks. Iran's conflict has already triggered volatility, with U.S. markets experiencing muted but persistent selling pressure since the initial shock. The key risk for these trades is a sharp rebound in equities, which would erase gains for those positioned for a slow grind. For now, the focus remains on managing downside risk amid uncertainty.