The Iran War Is Rattling Markets. But History Says Investors Who Do This Will Win.
Key Points
The S&P 500 experienced high volatility so far in 2026.
Through its existence, the S&P 500 has kept an upward long-term trajectory.
Dollar-cost averaging can help someone refrain from trying to time the market.
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Since the war in Iran began on Feb. 28, the stock market has been on a roller-coaster ride. The S&P 500 (SNPINDEX: ^GSPC) ended March down over 5%, but has jumped up over 11% since its March 30 bottom for the year (as of market close on April 21).
It seems stocks are, unsurprisingly, reacting to whatever flip-flop announcements are coming from the White House regarding the war. And while it can be tempting to try to time the market and take advantage of the volatility (it's more luck than skill), smart investors are doing one thing to win.
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The investors who will win are those who stay the course. The market has survived some of the country's toughest moments, including multiple wars (such as World War II and the Vietnam War), recessions, and even a global pandemic. Still, over that time, its direction has predominantly been positive.
The sooner you understand that volatility is inevitable, the easier it becomes to ignore it or look for deals that come from it. If you find it difficult not to try to time the market, consider dollar-cost averaging. When you dollar-cost average, you put yourself on a set investment schedule and stick to it regardless of market conditions or broader economic events.
As the old saying goes: Time in the market beats timing the market. Keep your eyes on the long-term investing prize.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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