Geopolitics and The Long View
The World Feels Volatile. So Do Markets.
Last weekend, headlines moved fast.
Iran launched a wave of missiles and drones toward Israel. The U.S. and its allies acted swiftly. And by Saturday night, the White House was holding an emergency press conference.
The world braced for escalation – and many expected markets to react sharply when they reopened. But they didn’t.
The immediate fallout was far more muted than expected. Markets absorbed the news, stabilized, and moved on – at least for now.
It’s a reminder that volatility and impact don’t always show up at the same time. At least not in the way we expect them to.
Markets Are Built to Absorb Shocks
This isn’t new ground for markets. They’ve been absorbing shocks like these — quietly and repeatedly — for decades.
Most major geopolitical events create noise, not long-term damage. Prices may wobble, but they often stabilize faster than expected.
Markets take in the headlines, then start asking better questions:
Will this escalate?
Will it impact earnings or policy?
Does it change the direction of the economy?
If the answers are muted, markets tend to settle. Not always instantly. But often faster than we expect.
Headlines Grab Attention. But They Rarely Change Outcomes.
Conflict has always been part of the investing landscape. From wars to assassinations to global unrest, history is full of moments that felt defining.
Yet despite it all, markets have moved forward.
The challenge isn’t the presence of fear. It’s how we respond to it. And that response often depends on what you're anchored to. Are you reacting to headlines or sticking with a strategy reflects who you are, what you value, and how you want your wealth to serve you?
“If it’s in the headlines, it’s in the price.”
What to Do Besides “Just Stay Put”
Sometimes “stay invested” sounds like doing nothing. It’s probably what you expect to hear – and often, it’s the right move.
But that doesn’t mean you just sit still.
Volatility creates opportunity. These are the moments when strategic investors adjust risk, revisit allocations, and make tax-aware moves that can quietly strengthen long-term results.
Not every shift has to be dramatic. But every decision should be grounded in where you are – and where you’re going.
Let your wealth reflect the life you’re building, not the noise competing for your attention.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Wells Fargo Advisors Financial Network does not provide legal or tax advice.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Edwards Asset Management is a separate entity from WFAFN.