Monitoring Volatility — and Opportunity
Recent geopolitical developments involving Iran have understandably driven market headlines and a noticeable increase in short-term volatility. While uncertainty can create uncomfortable market conditions, the underlying data suggests that markets are responding largely within historical norms for geopolitical events.
Energy markets have reacted quickly. Oil prices moved sharply higher late last week as the conflict raised concerns about potential disruptions through the Strait of Hormuz, a route that carries roughly one-fifth of the world’s oil supply. By Friday’s close, U.S. crude had moved above $90 per barrel while Brent crude rose to roughly $92 as markets reacted to the escalation.
Market volatility has also increased. The VIX—often referred to as the market’s “fear gauge”—rose sharply during the week, reaching its highest level since April 2022 as investors reassessed geopolitical risk.
Despite these developments, the broader equity market reaction has remained relatively contained compared with typical geopolitical market pullbacks. Historically, markets often experience periods of volatility during geopolitical conflicts, but these events rarely alter long-term investment fundamentals.
At Cottonwood Wealth Strategies, our portfolios are built with these environments in mind. We actively monitor developments like these and evaluate how changing conditions may affect both risk and opportunity across portfolios.
Importantly, we continue to see encouraging signs beneath the headlines. Institutional capital continues to flow into areas such as private credit even during volatile periods, suggesting continued confidence among long-term investors.
Our approach remains unchanged:
- Maintain diversified portfolios designed to weather market fluctuations
- Monitor developments carefully
- Look for opportunities to invest in high-quality assets when volatility creates dislocations
We have navigated many similar market environments over the years. Rather than reacting to short-term headlines, our focus remains on disciplined long-term strategies while evaluating opportunities that volatility may create for adding high-quality assets at more attractive valuations.
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Sources:
Reuters — Oil rises amid escalating Iran conflict
https://www.reuters.com/business/energy/oil-rises-expanding-us-israeli-conflict-with-iran-elevates-supply-risks-2026-03-03/
Reuters — Wall Street markets react to Middle East developments
https://www.reuters.com/business/wall-st-week-ahead-middle-east-developments-set-sway-us-stocks-inflation-data-2026-03-05/
Reuters — Volatility and VIX market data
https://www.reuters.com/business/wall-st-futures-slip-middle-east-conflict-rages-jobs-data-focus-2026-03-06/
Disclosures:
Content is for informational purposes only. Neither the information nor any opinion expressed in this video constitutes an offer by Cottonwood Wealth Strategies to buy or sell any securities or financial instruments, or to provide any investment advice or service.