It is easy to feel the weight of fear when news headlines scream of conflict. After the United States began Operation Epic Fury against Iran in late February, the S&P 500 (^GSPC +0.15%) dropped by as much as 9%. Wartime sell-offs are abrupt reminders that the stock market hates uncertainty.
Yet history shows us that volatility is not a bug in capital markets. It’s actually the system’s heartbeat. Investors who allow emotions to drive buying and selling decisions during these types of episodes consistently miss out on the powerful rebounds that always follow. And in this case, the rebound is apparently underway — the S&P 500 is already back to setting new highs.
Staying invested through geopolitical storms, economic cycles, and policy shocks delivers superior long-term wealth generation. Why is that? Because markets do not simply survive chaos. They price it in, adapt, and then…
