Crisis or Non-event? What if it's Something in Between???

Is the situation in the Middle East a non-event? That's what the stock market is pricing-in so far.

• Right now, the reaction in the stock market to Israel’s attack on Iran is a very benign one. In other words, it’s pricing-in that this geopolitical development will be a non-event. This might be the correct reaction…….However, what if it’s not a non-event? Given how expensive the market has become, something in between a non-event and a crisis…is still an outcome that will create some real headwinds for the stock market soon before long.