With the recent turmoil created by the US and Iran crisis, I thought it would be beneficial to touch upon how the market has done historically after a geopolitical crisis.
The recent crisis between the US and Iran did result in the S&P 500 sliding down, but the following trading sessions saw the market rebound. Part of the rebound can be attributed to the seemingly de-escalation of any potential full-blown conflict between the two nations. But another part of the rebound could be attributed to investors growing a thicker-skin and understanding that over-reacting to market dips caused by geopolitical events is not prudent.
As seen in the following article by Markets Insider and the chart by LPL Financial, going back to WW2, the market has a strong history of rebounding after significant geopolitical crises. To read the full article, please click HERE.
