Recent events in the Middle East have understandably captured the world’s attention. Joint airstrikes against Iran targeting key military installations have escalated tensions in the region, and Iran has responded with missile attacks directed at Israel and several Gulf states, including Qatar, the United Arab Emirates, Bahrain, and Saudi Arabia. These developments have also caused some disruption in global energy markets, with tanker traffic in the Strait of Hormuz — a route that carries roughly 20% of the world’s oil supply — temporarily slowing and oil and gas prices moving higher.
While the situation is serious and still unfolding, it’s important to remember that markets have historically shown resilience during geopolitical events like these. Periods of uncertainty can lead to short-term volatility, but once conditions begin to stabilize, markets have often recovered and continued moving forward. Obviously each geopolitical event is unique, however as shown in the chart below of past geopolitical events, in most instances, markets have recovered rather quickly, many times within 30 days though recover periods varied and past market behavior is not indicative of future results.
As always, our guidance is to stay patient and remain diversified. Moments like these can feel unsettling, but keeping a long-term perspective and staying focused on your financial plan has historically proven to be the most effective approach.
We hope for a peaceful resolution and a safer world in the days ahead.
Investment Advisory Services are offered through Mariner Platform Solutions (MPS), a SEC Registered Investment Adviser. XMc Wealth Management and MPS are not affiliated entities.
This material is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Indices are unmanaged, do not incur fees or expenses, and cannot be purchased directly as an investment. Index performance is shown for illustrative purposes only. This commentary contains forward-looking statements and opinions that are subject to change without notice based on market and other conditions. Investing involves risk, including the possible loss of principal. There is no guarantee that any investment strategy will achieve its objectives.
