Markets grown accustomed to geopolitical heat; defense theme in focus since last year. Unless conflict proves lengthy, ready to roll over as risk already built in.

Survey shows over 75% of advisors want to put money in equity risk in 2026 despite uncertainties. Broadening diversification into thematic exposures (e.g., defense) means investors less reactive, already positioned.

International is flavor of the year: over 40% of top 20 ETF flows into international ETFs, EM leading with unprecedented percentage. Conflict could question trade if ongoing, as US is strong hedge. Energy play interesting: Europe dependent on Middle East oil. Curious how investors will play energy: oil fund (USO), energy equity (XLE), or MLPs (AMLP) for stable yield.

Quality factor worked well but expensive; active ETFs blending quality/valuation awareness delivering. Watching international trade continuation and impact of latest news on diversification from US-centric exposure.