Providing Market Context Around Historical Geopolitical Events

Melissa Kolcz |

In light of the recent conflict between Israel and Iran, I wanted to share a visual that helps provide some historical perspective on how markets have responded to major geopolitical events.

This isn’t about making predictions - it’s about grounding ourselves in the data.

While events like this are deeply unsettling and tragic on a human level, history shows that the S&P 500 has recovered (on average) over the next year.

In fact, following events such as wars, invasions, and political crises, the S&P 500 has historically delivered an average return of 14.2% over the following year.

I’m sharing this to offer context, not certainty.

During uncertain times, it’s important to stay focused on your long-term plan and avoid reacting emotionally to short-term headlines.

We know these headlines can be deeply unsettling. Remember, you don't have to navigate market uncertainty alone. We are here to help you stay grounded in your long-term goals, especially when the world feels unpredictable.

Chart Source:

Exhibit A, 2025 [URL: exhibitaforadvice.com]

Data Source:

FactSet, 2025 [URL: factset.com]

S&P Global, 2025 [URL: spglobal.com]