Analyst: This Middle East crisis might be different this time. It is advised not to buy into any dips immediately.

Odaily Planet Daily reported that as Iran launches missiles at U.S. military bases in Gulf cities, airlines suspend flights, and oil tankers carrying oil and other products halt passage through the Strait of Hormuz, the situation has become more chaotic. Rong Ren Goh, portfolio manager of HanYa Investment’s fixed income team, said that the tail risks in the Middle East have increased. The market will reprice itself, shifting from geopolitical shocks to regime risk shocks and long-term conflicts, rather than just retaliatory actions, unless Iran indicates willingness to negotiate. Analysts believe a greater risk lies in market complacency. The market has been assuming that the impact of the conflict will be limited and dismisses comparisons to Iran’s regime change in 1979. Barclays analysts stated that history strongly proves not to chase gains during conflicts, but to “sell the facts.” However, it is concerning that investors have now become accustomed to the mindset of “selling the facts,” potentially underestimating the risk of losing control of the situation. It is advised not to buy any dips immediately. If the stock market experiences a significant correction, such as the S&P 500 dropping more than 10%, then a buying opportunity might arise. But not now. (Jin10)