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Scary headlines might prompt you to "do something" amid market volatility, but impulsive reactions are often the greatest risk to long-term investment performance. Here's what to do instead.
By
Mallon FitzPatrick, CFP®, AEP®, CLU®
published
10 April 2026
in Features
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Geopolitical headlines in the past few weeks have been jarring.
As joint U.S. and Israeli air strikes on Iran dominates the global news cycle, it's natural for a sense of anxiety to surface. There is a direct impact on energy markets, with oil prices surging and the critical Strait of Hormuz facing unprecedented disruption.
For many investors, the instinct during such volatile periods is to do something — to move to the sidelines or pivot away from a long-term strategy in search of a temporary safe harbor.
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Sign upHowever, history has repeatedly shown that staying invested during times of maximum uncertainty is almost always the superior strategy for long-term wealth preservation.
The noise vs the numbers
A recent New York Times analysis regarding the current conflict highlights a recurring market phenomenon. While the initial "shock and awe" of military action often triggers a sharp sell-off in equities and a flight to havens such as gold and Treasuries, these reactions are frequently short-lived.
Historically, markets have a remarkable capacity to price in geopolitical risk quickly. From the onset of past conflicts to the height of the Cold War, the long-term trajectory of diversified portfolios has been driven far more by underlying economic fundamentals than by the headlines of the day.
The danger of reacting to today's news is two-fold: missing the eventual recovery and locking in losses. Markets often bottom when the news feels the most dire. By the time the dust settles and the path forward feels clear, the most significant gains of a recovery have often already occurred.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Why you should review your plan now
While staying the course is the right mathematical move, it's often easier said than done. If the current volatility is causing sleepless nights, it might be a sign that a portfolio is not aligned with actual risk tolerance — or, more likely, that the plan hasn't been properly pressure-tested for this specific environment.
A resilient wealth plan isn't designed for a perfect world; it's built to survive stress tests. For anyone feeling uneasy, a formal wealth planning review is the most effective way to gain clarity. During such a review, it's critical to model three specific stress scenarios:
- A prolonged market downturn. Visualizing exactly how a multiyear period of suppressed returns impacts the probability of success for retirement or legacy goals.
- Higher-than-historical inflation. With energy prices spiking due to conflict, analyzing how a sustained period of elevated inflation affects purchasing power and long-term spending needs.
- Income uncertainty. As AI tools rapidly shift the job market, modeling scenarios for a career pause or a period of lower income ensures the plan can absorb personal professional transitions.
In the majority of cases, these reviews reveal that a well-constructed plan remains intact despite the turmoil. Visualizing the data provides the emotional fortitude needed to ignore the noise and remain disciplined.
When change is necessary
This isn't an argument for blind adherence. If, after reviewing these stress tests, it appears that a prolonged conflict or a prolonged shift in markets and inflation puts core goals at risk, then it might be time to discuss adjusting the investment strategy.
Adjustments should be driven by changes in objectives or the plan's fundamental viability, not by the latest breaking news notification. Consider crafting a portfolio buffer: Less volatile asset allocation, liquidity reserves and access to credit to help absorb shocks without abandoning the market entirely.
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.
Moving forward
While no one can control the geopolitical landscape, you can control your reaction to it.
Monitoring the situation in the Middle East with vigilance is necessary, but reacting impulsively is often the greatest risk to long-term investment performance.
A comprehensive plan provides the road map necessary to navigate turbulent times.
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
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Mallon FitzPatrick, CFP®, AEP®, CLU®Social Links NavigationPrincipal, Managing Director and Head of Wealth Planning, Robertson StephensMallon FitzPatrick leads Robertson Stephens’ Wealth Planning Team and delivers comprehensive wealth planning solutions for high-net-worth and ultra-high-net-worth clients. He collaborates with clients to develop a strategy that integrates tax planning, risk management, philanthropy, liquidity and balance sheet management, estate planning and investments. Ultimately, the client is provided with a cohesive wealth plan that helps increase the likelihood of experiencing good outcomes, meets their objectives and aligns with their preferences.
