Iran conflict causing short-term volatility, but investors should stay committed to longer-term plans

Market Perspectives

With the unfolding military conflict in Iran, we have already seen a spike in energy prices and volatility in equity markets. In this note, we look at comparable events over the last 35 years to see how both the TSX Composite and S&P 500 reacted in the days, months, and year that followed. We examine how the price of oil further influenced market outcomes. Overall, despite near-term uncertainty, the data suggests that investors are best suited to avoid knee-jerk reactions to the current noise, and to stay committed to longer-term plans.