Staying Calm Key for Investors Amid Market Volatility

Experts advise patience as stock markets recover from shocks like the Iran war's impact on oil prices.

Mar. 12, 2026 at 8:18pm

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When stock markets are as volatile as they've been recently, it's natural for investors to want to protect their retirement savings. But historically, staying calm and patient has usually been the best approach, as the U.S. stock market has a track record of recovering from every steep drop it's taken, even if it takes years. Experts recommend not putting money into stocks that you can't afford to lose for several years, and suggest keeping a diversified portfolio to help smooth out shocks.

Why it matters

The war in Iran has disrupted global oil supply, causing extreme swings in the stock market and raising concerns about 'stagflation' - stagnant growth combined with high inflation. This highlights the importance of investors maintaining a long-term perspective and not making rash decisions during periods of market turbulence.

The details

The fighting in the Strait of Hormuz has halted most oil traffic, causing storage tanks in the region to fill up. This has pushed oil producers to cut output, briefly spiking oil prices to nearly $120 per barrel, the highest since 2022. Analysts warn prices could reach $150 if the strait remains closed. This could lead to a 'stagflation' scenario of stagnant growth and high inflation, which central banks have few tools to fix.

  • On Monday, oil prices briefly spiked to nearly $120 per barrel, the highest since the summer of 2022.
  • Several times since the start of the Iran war, the Dow Jones Industrial Average has plunged roughly 900 points in the morning only to erase its loss later in the day or come close to it.

The players

Anthony Saglimbene

Chief market strategist at Ameriprise.

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What they’re saying

“Although volatility may feel uncomfortable, could rise from here, and possibly cause a near-term drawdown in stocks, volatility in itself tends to be brief when it reaches more extreme levels. And, more often than not, the extreme volatility provides investors with a solid long-term entry point to buy stocks rather than sell.”

— Anthony Saglimbene, Chief market strategist (Ameriprise)

The takeaway

This case highlights the importance for investors of maintaining a long-term perspective and not making rash decisions during periods of market volatility. Staying calm and patient, while keeping a diversified portfolio, has historically been the best approach for weathering market shocks and recovering losses.