These latest developments in the Middle East understandably have many investors on edge. As market
strategists, we face the difficult task of separating the human toll from the economic and financial toll—never easy when lives are lost in times of geopolitical conflict.
For investors, the good news is the stock market has a long history of shrugging off significant and unsettling geopolitical events. As serious as this escalation and the prospect of war with Iran are, previous experiences have shown us these developments may not have much impact on U.S. economic fundamentals or corporate profits. That means any resulting stock market volatility may be fleeting, as was the case last week.