Message from the CIO: Iran Developments – Portfolio Perspective
The following message was originally distributed to clients on March 2, 2026.
This past Saturday, February 28, the U.S. and Israel launched attacks on Iran, killing several senior figures including Iran’s supreme leader, Ayatollah Ali Khamenei. In retaliation, Iran has fired missiles at its Gulf neighbors and U.S. military bases in the region. We are closely monitoring the conflict and potential market implications.
While breaking headlines may create an impulse to adjust portfolios, we encourage clients to take a long-term view. History suggests that geopolitical events should not be the primary driver of investment decisions. Although war creates second- and third-order effects—including impacts on inflation and the outperformance of specific sectors—it is difficult to determine how much of these are already priced into the market. The responses of public and private actors to these events are difficult to assess with confidence.
Notably, and perhaps counter to intuition, the stock market has frequently rebounded shortly after the onset of global conflicts and crises. This isn’t at all to minimize the gravity of what is emerging in a historically turbulent region of the world or to predict that markets will come out ahead on this news. But investment decisions need to be rooted in long-term discipline rather than near-term headlines.
We will reach out if portfolio action is warranted. In the meantime, please don’t hesitate to contact us with any questions or concerns.
The above information is for educational purposes and should not be considered a recommendation or investment advice. Investing in securities can result in loss of capital. Past performance is no guarantee of future performance.
