Tensions in the Middle East have impacted global markets. Both shares and bonds have experienced losses amid uncertainty, and oil prices have spiked, creating a challenging dynamic. Although recent events can feel unsettling for many reasons, history suggests that such periods don’t typically derail long-term investment outcomes.

In a recent video, Vanguard Australia’s Principal, Chief of Personal Investor, Renae Smith, provides some important perspective for investors on the current market volatility, and shares how to focus on strategic vs. emotional decisions – it’s worth taking a look.

Market volatility is nothing new.

Consider some of the events that have shaken investment markets over the past 30 years or so, including the:

Asian currency crisis in 1997: When the rapid devaluation of the Thai baht triggered a series of currency crises across Asia.
dot.com bubble burst in late 2000: When a share market bubble that ballooned during the late-1990s burst, seeing many online shopping and communications companies failing.
Global Financial Crisis (GFC) in 2008: A major worldwide economic crisis, largely caused by subprime mortgage lending in the US and a resulting housing bubble.
Covid-19 outbreak in early 2020: The COVID-19 pandemic, which began in China and spread worldwide, causing significant global economic and social disruption.
US trade tariff announcements in early 2025: Sharemarkets initially dipped hard before recovering to reach record highs.

Each one grabbed headlines, but markets ultimately recovered.