Periods when stocks and bonds decline together are often associated with inflation concerns, policy uncertainty, or sudden risk repricing. Historically, these environments have tended to be transitional rather than enduring. Markets adapt as inflation pressures ease, policy clarity improves, and uncertainty fades. 

Geopolitical events rarely alter long-term market direction unless they result in: 

A prolonged disruption to global energy supply. 

A pronounced tightening in financial conditions. 

A broad economic downturn. 

Absent these outcomes, markets have typically recovered even when tensions have persisted. While markets don’t like uncertainty, strong reactions to geopolitical events are generally short-lived. In the wake of major geopolitical events going back decades, U.S. stocks have delivered positive average returns 6 and 12 months later.