I know one should not time the market, but I think it is also stupid to ignore global geopolitical circumstances. With the current situation in the near east and the upcoming conflict potential between USA, Iran, Israel, Irak, Saudi Arabia, Turkey and Greece and all the gas pipeline projects and oil stuff there I tend do rebalance a bit stronger from ETFs (VTI, VSS,VWO, VEA, SMMCHA) to bonds (TLT, IEF, one swiss bond?)
TLT, IEF had quite a plus last Friday after Trump sent that Iranian General to heaven at the same time everything else dropped. I think the conflict potential is very high at the moment and it’s just a matter of time when a bigger incident will occur again.
What are your thoughts on this? Do you think the market will correct a bit and will especially react strong to some global incident or do you think this strong correlation last Friday was just because it was anyways holidays time and the liquidity on the market was low, hence the market will continue in 2020 where it has stopped in 2019?