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‘Short Money, Long Rocks’: The Trade of 2026

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Two weeks into the Iran war, risk-averse investors have pulled back on financial stocks while betting on energy and haven assets like gold. Or as Dave Nadig puts it, traders are going “short money, long rocks.”

“They’re buying gold, they are buying oil, they’re buying real assets,” said Nadig, president and director of research at etf.com.

Major banks are down more than 10% year-to-date and private asset managers are down around 30% as investors fret about credit weakness and higher-for-longer interest rates. Meanwhile, Invesco’s Optimum Yield Diversified Commodity Strategy, an ETF that tracks energy, precious metals, industrial metals and agriculture, is up close to 30%.

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