Clark: Iran Conflict "Isn't as Severe" to Markets, "Embrace Volatility" in 2026

• Geopolitical events historically cause short-term market volatility, but markets tend to recover, with average 3-year annualized returns of approximately 13% after major shocks.
• Markets primarily focus on earnings growth, innovation (like AI), and economic expansion, rather than temporary geopolitical disruptions.
• Midterm election years are typically the most volatile in the four-year cycle, but the 12 months following a midterm election have historically shown positive S&P 500 returns, averaging around 15% since 1950.
• The U.S. economy is fundamentally in good shape with low unemployment and strong earnings, despite recent weaker jobs data and short-term oil price spikes.

The discussion analyzes the impact of geopolitical conflicts and midterm elections on financial markets. Brandon Clark advises investors to use historical data as a guide, emphasizing that markets typically view geopolitical shocks as temporary. He highlights the underlying strength of the U.S. economy and robust earnings growth, encouraging investors to embrace volatility for long-term returns.