Core Viewpoint - The ongoing conflict between the U.S. and Iran is causing market volatility, prompting investors to reassess their portfolios and investment strategies [1][3]. Group 1: Market Reactions - Energy prices have surged while travel stocks and regional assets have declined as markets prepare for potential military actions lasting a month or more [3]. - The volatility in the market raises concerns about the possibility of larger losses, but it is emphasized that volatility alone should not trigger a complete portfolio overhaul [3]. Group 2: Rebalancing Strategies - Rebalancing should occur when investment allocations drift significantly from targets, typically by 5% or more, rather than in response to headlines [4]. - The focus should be on maintaining a balanced portfolio by trimming sectors that have grown disproportionately, such as energy stocks, and reallocating to underweight areas like broad equities or fixed income [5]. Group 3: Role of Bonds - Bonds are considered a safer investment during conflicts, providing stability and flexibility in a portfolio [6]. - Short- to intermediate-duration bonds are recommended to manage inflation and rate risk while offering protection during equity volatility [6].