As geopolitical tensions escalate, particularly with uncertainty surrounding Iran’s political future, investors are grappling with how to safeguard their
portfolios. In an exclusive conversation with ET NOW, Peter Cardillo advises caution without abandoning the markets. “You need to stay in the market because the fundamentals are not going to change,” he says, adding that while earnings season will support valuations, volatility is inevitable. Cardillo said, "You know, I think at this point with all these geopolitical problems that we have, you need to stay in the market...I think the earnings season is going to support the valuations that we presently have. But that doesn't mean it's not going to be a bumpy ride." This comes at a time when both benchmark indices, Nifty 50 and Sensex, have sustained continued pressure in the near term. In the last five trading sessions, Nifty 50 has declined nearly 0.70 per cent to trade lower at 25,665.60. Notably, this streak of decline came shortly after the Nifty 50 hit a record high of 26,373.20 on Jan 5, 2026. Similarly, for Sensex, the benchmark has fallen over 1 per cent in the last five trading sessions, closing lower at 83,382.71 on Wednesday. The volatility is led by a combination of factors, including geopolitical crises, ongoing earnings seasons, and other cyclical slowdowns. In the current scenario, Cardillo recommended that a certain amount of asset allocation should be in some sort of hedge, and the best hedge is gold. "Volatility is likely to increase until the geopolitical problems are either settled or at least cooled down for a while. So you need to be invested, but you also need to be very cautious. And so that means a certain amount of your asset allocation should be in some sort of hedge. And the best hedge to do it with is obviously owning a certain amount of gold," he said. Apart from the Middle East crisis, the market sentiments have been shaky following the US Supreme Court hearing on Donald Trump’s tariff powers, renewed tension between the US Federal Reserve and White House, persistent foreign investor selling, and uncertainty over India-US trade relations, which combined to trigger a broad‑based slide across benchmarks. (Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
