Recent market action shows 'huge amount of optimism' for resolution in Iran War, says Citi's Moore

• Market optimism for a quick resolution to the conflict and limited inflationary impact from energy shocks makes her nervous.
• Recommends building resilient portfolios against inflationary risks and prolonged conflict, noting gold's role as a portfolio ballast.
• Mentions tweaking fixed income positions, adding short duration, and trimming emerging market debt.
• Expresses caution on European equities, citing multiple expansion as the primary driver of past gains and a complicated growth story due to natural gas disruptions and inflation.

Kate Moore of Citi Wealth discusses market action reflecting cautious optimism for a resolution in the ongoing conflict, but expresses nervousness about the market's assumption of no broad inflationary impact from energy shocks. She advises building resilient portfolios, noting that gold has been a useful ballast but fixed income has been disappointing. She also highlights concerns about European equities due to multiple expansion and complicated growth prospects.