As we move through the first week of March, we want to share a few thoughts to help provide a steady perspective amid recent global headlines. In moments of heightened geopolitical tension, like the current conflict in Iran, it is natural to feel a sense of unease. Our goal is to help filter out the noise and focus on the fundamental drivers of your long-term financial health.
The recent joint U.S. – Israeli strikes and subsequent retaliatory actions have understandably introduced a fresh wave of volatility to the markets. While these events are serious, historical data reminds us that geopolitical flare-ups often trigger temporary market selloffs rather than sustained bear markets.
Your Purus Investment Committee is monitoring the situation abroad and is also looking beyond the Middle East to several other factors shaping the 2026 market landscape. Some positive tailwinds are the AI Supercycle, possible interest rate reductions and timing, and fiscal stimulus via the “One Big Beautiful Bill.” In addition to the geopolitical risks, we are also keeping an eye on normal election year volatility, inflation and the overall financial health of the consumer.
In times like these, the most effective strategy is a disciplined adherence to your diversified plan. Volatility often presents long-term opportunities for those who remain patient.
As always, if there is anything you would like to discuss, please reach out. We would love to hear from you!
"As war in the Middle East escalates, investors are confronted with the reality of a world that is becoming more dangerous. With markets reacting minute by minute to the news, it's helpful to take a step back and consider events in a broader perspective. With that in mind, three Capital Group professionals offer their assessments of the developing U.S.-Iran conflict."
"First, history is instructive. Markets have generally proven resilient following geopolitical shocks. Often, stock markets have delivered positive returns in the 12 months after major military events. We examined 11 points in history where we experienced a peak in the Geopolitical Risk Index - from the 1962 Cuba Missile Crisis to the 2023 Israel/Hamas conflict - and the return of the S&P 500 Index 12 months after that peak. In most cases, the the stock market rose in the year following peak geopolitical risk, with an average rise of 15.3% across all 11 conflicts."
"Can pharma and biotech stocks build on their momentum? After several years of headwinds, sentiment toward these sectors turned more constructive toward the end of last year, supported by greater clarity around policy risks and renewed merger and acquisition (M&A) activity."