{"id":43647,"date":"2026-05-07T18:43:20","date_gmt":"2026-05-07T18:43:20","guid":{"rendered":"https:\/\/financialrush.com\/?p=43647"},"modified":"2026-05-07T18:43:20","modified_gmt":"2026-05-07T18:43:20","slug":"iran-war-market-jitters-offer-silver-lining-for-investors","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=43647","title":{"rendered":"Iran war market jitters offer silver lining for investors"},"content":{"rendered":"

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Traders work on the floor of the New York Stock Exchange (NYSE) on May 6, 2026 in New York City. <\/p>\n

Spencer Platt | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Iran war has triggered big swings in the stock market<\/a> since the conflict started more than two months ago. <\/p>\n

While sharp selloffs in stocks can be unsettling, they offer a silver lining to investors, financial advisors and other experts said.<\/p>\n

“Every drawdown is a useful stress test,” Kevin Khang, senior global economist at Vanguard Group, an asset manager, wrote in an April 22 market commentary<\/a>.<\/p>\n

Namely, the “discomfort” that investors feel reveals important information about their risk tolerances \u2014 something that “a calm market simply does not provide,” Khang wrote. <\/p>\n<\/div>\n

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Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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That information can help guide investors’ overall mix of stocks, bonds and other financial assets in a portfolio.<\/p>\n

For example, if a significant dip prompts behavior such as portfolio reviews or “restless nights, that’s meaningful insight \u2014 not because this drawdown was particularly dangerous, but because the emotional signal it provides can help investors tailor portfolio allocations to their comfort zones,” Khang wrote. <\/p>\n

The S&P 500 U.S. stock index shed about 9% from a Jan. 27 closing price peak to the March 30 trough, following the initial weeks of the Iran war. They’ve since gone on to recover their losses and reach new all-time highs, even though the Middle East conflict is ongoing. <\/p>\n

Stocks retreated from record highs<\/a> as of 2:30 pm ET on Thursday as investors waited for Iran’s response to a U.S. proposal to end the war and reopen the Strait of Hormuz, a key transit artery for oil tankers. <\/p>\n<\/div>\n

Stock volatility ‘is a good test’<\/h2>\n
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By the end of March, the CBOE volatility index (VIX<\/a>