Home/ Questions/Q 11036
Next
In Process

Fokona Latest Questions

Chinonye
Asked: 2026-03-24T18:32:37+00:00 In:

How Does the Iran War Affect Stock Markets and Equity Funds Globally?

The US-Isreal and Iran war is impacting very negatively on the equities market worldwide. This is making the gains made in the Equity Funds to depreciate. Is it the right time to exit the market?

equity fundsstock markets

You must login to add an answer.

Need An Account,

2 Answers

  1. Luyah Ola

    My answer is diversification. During war, some sectors are affected while others gain. Sectors like energy often benefit.

    My answer is diversification. During war, some sectors are affected while others gain. Sectors like energy often benefit.

    See less
  2. Ochoyoda
    Contributor

    You're absolutely right — the US-Israel vs Iran conflict is currently affecting global equities and causing equity funds to lose some of their gains. But the key question is: Should you exit now? Here’s the clear, practical answer: Short Answer No — For most long-term investors, this is usually NOTRead more

    You’re absolutely right — the US-Israel vs Iran conflict is currently affecting global equities and causing equity funds to lose some of their gains. But the key question is: Should you exit now?

    Here’s the clear, practical answer:

    Short Answer

    No — For most long-term investors, this is usually NOT the right time to exit.

    In many cases, exiting during war-driven volatility leads to locking in losses and missing the recovery.

    Let me explain.

    What Is Happening Right Now

    Global markets have become volatile due to geopolitical tension and rising oil prices. �

    Reuters

    Since the conflict began, global stocks have fallen around 5–6%, with some markets declining even more.

    Oil shocks and inflation fears are the major drivers of the decline.

    This is normal behavior during wars.

    What History Shows (Very Important)

    Wars often cause short-term market drops, but markets usually recover later.

    In past conflicts, stocks were often higher one year after wars began (average +7%).

    Financial experts generally advise investors to stay invested and avoid emotional decisions.

    This is why many experienced investors do not exit during war-driven dips.

    When It Makes Sense to Exit

    You may consider reducing exposure ONLY IF:

    You need the money in the short term (0–12 months)

    Your risk tolerance is very low

    Your portfolio is too heavily weighted in equities

    You’re already at profit and want to rebalance

    Otherwise, panic exit is usually a mistake.

    Smart Moves Instead of Exiting

    Here are better strategies:

    1. Stay Invested (Best for long-term)

    Markets usually recover after uncertainty fades.

    2. Gradual Rebalancing

    Move small portion to:

    Money Market Funds

    T-Bills

    Bonds

    (Not full exit)

    3. Use the Opportunity

    Experienced investors buy during fear.

    Warren Buffett’s famous idea:

    “Be fearful when others are greedy and greedy when others are fearful.”

    What I’m Personally Seeing (Current Market Behavior)

    Markets are falling

    Oil is rising

    Inflation fears increasing

    Volatility high

    But:

    Some sectors are benefiting (energy, commodities)

    Long-term fundamentals haven’t collapsed

    My Practical Advice (Based on Your Situation)

    Since you:

    Are building investments gradually

    Use equity funds

    Focus on long-term wealth

    Best approach for you:

    Don’t exit completely

    Hold your equity funds

    Consider adding small amounts gradually (if possible)

    This is how smart investors build wealth.

    See less