The last three months of positive equity market returns is another example of how investment markets recover from short-lived anxiety, like the recent conflict between Israel and Iran.

As with any major geopolitical event, investors face uncertainty about the impact these events might have on global economies and financial markets. Over the past 50-plus years, investors have experienced numerous, and varying investment challenges including double digit inflation, financial crises, and a global pandemic.

Yet, financial markets have consistently demonstrated tremendous resilience, continually adjusting to new information and rewarding investor discipline in the long run.

As the following graph demonstrates, one dollar invested in the MSCI World Index (a broad global index of companies) in 1970 would have grown to $217 by 24 June 2025, despite the challenges along the way. Investors tempted to react to short-term turmoil may risk missing out on these longer-term returns.

Maintaining broad diversification and adhering to a sound financial plan remain reliable ways to stay the course and capture markets’ long-term growth potential.

While past performance is not indicative of future results, knowledge of this deep history of market resilience can help investors to form a more disciplined approach to their investment journey.

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