The Iran War—does it present an investment opportunity?
The Dow Jones closed at 50,188 on February 10, 2026, its highest level ever. As of the close on April 1, 2026, it stood at 46,565, representing a decline of about 7.2% from its peak. Clearly, geopolitical tensions—and rising oil prices in particular—have contributed to this pullback.
However, as the chart below (courtesy of Capital Group) illustrates, intra-year market declines are both normal and expected. On average, markets experience two pullbacks of around 5% each year, while declines of 10% (a “correction”) tend to occur roughly every 18 months.
So the key question becomes: If you have excess cash available to invest, should you “buy low” now, or wait until things “calm down” before investing?
But what does “calm down” really mean? Does it mean waiting for the Dow to return to 50,000?
The reality is this: if you have capital that you won’t need for at least five years—meaning you may rely on income from the investment but not the principal—then 10 times out of 10, I would advocate for buying the dip!
Please know I’m practicing what I preach. Earlier this week, I moved excess cash from our bank account into our investment account.
If you’d like to explore this strategy, we’d be happy to help. And as always, we’re grateful for your continued trust in Henry Wealth Management.