Thus far, 2026 has been volatile. The war in the Middle East has pushed oil prices higher and added to uncertainty around policy, inflation, and interest rates.
It’s understandable that this can feel unsettling.
Markets pulled back after reaching new highs earlier this year, largely as investors reacted to geopolitical developments. But while the headlines may feel new, this type of market behavior isn’t.
Portfolios are designed with the understanding that volatility will happen. We don’t always know what will cause it, but we do expect it. The goal isn’t to avoid these periods—it’s to be prepared for them.
Even over the first few months of the year, we’re seeing how that plays out. While U.S. stocks have pulled back, international and emerging markets have held up better. This is one of the benefits of diversification, it reduces reliance on any single market or outcome.
While oil prices have been a major focus, they’re just one piece of a much larger picture. Markets respond to many factors at once, which is why reacting to a single headline rarely leads to better long-term results.
When markets feel uncertain, the instinct is to act, to move to cash or wait until things feel clearer. The challenge is that markets don’t wait for clarity. By the time things feel better, much of the recovery has already happened.
That’s why the real risk isn’t short-term volatility, it’s reacting to it.
We’re continuing to monitor how these developments impact the broader economy and markets, but at this point, they don’t warrant changes to long-term strategies.
Our approach remains the same: stay diversified, stay aligned with your long-term goals, and make decisions intentionally, not based on headlines.
If you’d like to talk through anything you’re seeing or thinking about, we’re always here. Read a more in-depth review of last quarter here.
