Geopolitical Events and Market Direction

Over the weekend, the attack on Iran introduced another geopolitical event that may create short-term fear, uncertainty, and doubt (FUD) in the equity markets.

 

However, when we take a longer-term perspective, history shows that markets are higher 12 months after similar events, with average returns close to 7%.  See the chart below:

 

Our focus remains on staying invested and concentrating on the areas we believe are undervalued. The chart included illustrates this clearly—despite geopolitical disruptions, markets continue their long-term trend upward.

 

Stay invested.  Please don’t hesitate to reach out if you’d like to discuss further.

Disclaimer:

The information in this material is for general information only and is that of the author, not a recommendation or solicitation to buy or sell investment products. This material was developed and produced by James Sullivan, who is not affiliated with the named broker-dealer. Always consult a tax or legal advisor to review your situation comprehensively.  Dollar-cost averaging will not guarantee a profit or protect you from loss, but may reduce your average cost per share in a fluctuating market. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment. It does not take into account the effects of inflation and the fees and expenses associated with investing.  A diversified portfolio does not assure a profit or protect against loss in a declining market.