The Iran War Shock Just Emphasized Exactly Why Patient Investors Keep Winning
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The Iran war caused a significant drop in the S&P 500 index, but it has since rallied, gaining over 12% since its March 30 low. Patient investors have benefited from the long-term gains in share prices despite short-term shocks.
The Iran war led to an 8% drop in the S&P 500 index over a month. However, it has since rallied, gaining over 12% since March 30. The S&P 500 and Nasdaq-100 index reached new all-time highs. Global stocks are also surging, with the Vanguard Total International Stock ETF almost back to its pre-war highs. Historically, the stock market tends to bounce back fast in the long run. Data shows that global stocks have delivered real average annual returns of 4.9% over 200 years, and U.S. stocks have done better, with 7.2% returns over the past 100 years. The economy has also become more resilient to oil shocks, making it less painful than expected.
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