Investing During Geopolitical Tensions: Lessons from History
Geopolitical tensions, such as the ongoing conflict between Israel and Iran, often precede significant movements in US financial markets. Historical analysis shows that the recent recovery of the S&P 500 and Nasdaq 100 is bolstered by strong fundamentals from the first quarter of the year. Additionally, a low put/call ratio reflects investors’ confidence in market resilience under pressure. As investors navigate these historical contexts, understanding how previous market behaviors respond to similar tensions can empower informed investment decisions. Engaging with historical patterns can also reveal strategic opportunities for profit even amid uncertain times.