The more things change, the more they stay the same. For the markets, that means there’s some issue bubbling up to the surface. These days, there are rising tensions in the Middle East. Just as we received some closure on trade between the U.S. and China, problems between the U.S. and Iran have taken a turn for the worse. After years of saber rattling, sanctions, and threats, there has been some military action by the two nations.
And in that, the market now has its latest worry.
The question is, should investors be worried? Sure, the conflict has the potential to rile up traders and send stocks much lower. That was exactly what happened when the news first broke. But the reality is, any conflict in the Middle East should have a muted effect on the medium- to long-term picture for equities. And we have history as a guide for that.
All in all, investors may not need to worry about the conflicts arising between the U.S. and Iran.
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