U.S.-Iran Conflict is a ‘Buy-the-Dip’ Opportunity, Says Wall Street

FomoAnxiety · 2026-03-03T15:42:41+00:00

Wall Street firms advise investors to capitalize on lower stock prices amid Middle East tensions, noting that geopolitical volatility often leads to buying opportunities, with historical data supporting market recovery in the following months.

FomoAnxiety

2026-03-03 15:42:41

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Amid heightened tensions in the Middle East, several Wall Street firms have urged investors to take advantage of lower stock prices.

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Geopolitical events may create short-term volatility, although long-term returns have largely been unaffected by them. “We would look for a 1-2 week decline in risk assets, creating a buy-the-dip opportunity as the market looks through the initial pullback,” said traders at JPMorgan.

S&P 500 Tends to Bounce After Geopolitical Shocks

Wells Fargo echoed JPMorgan’s stance, adding “geopolitical dips should be bought, usually recovering in two weeks.”

Since World War II, the S&P 500 (SPX) has an average loss of 0.9% following a major geopolitical event, according to Carson Investment Research. However, the index returns 0.8% three months after such an event and 3.4% six months after.

Meanwhile, Wall Street has held firm on its year-end price target, which implies upside of about 10% from current levels.

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