The Israel–Iran conflict has made global headlines, but its impact on share markets has been limited so far. While oil prices have risen slightly, global equities have largely recovered from an initial dip.
History shows that conflicts like this often cause short-term volatility, but markets tend to rebound. It’s a timely reminder that KiwiSaver portfolios are typically designed with a long-term time horizon in mind. While geopolitical events can cause short-term market movements, they’ve historically had limited impact over the long term.
Portfolio Manager, Harry Smith explains more about why the market response to this conflict has been muted, and what’s driving the movement in oil prices.
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