If you turn on the mainstream media right now, the Israel/Iran conflict is dominating the headlines.

Oil prices have spiked. The S&P 500 pulled back.

And naturally, people are asking: Is this the start of something bigger?

However, we’ve seen this playbook before.

It starts with breaking news: a drone strike, a missile launch, a shocking assassination.

Oil rallies. Defense stocks surge. Broader equities pull back as headlines scream about escalation and global instability.

But zoom out… and the pattern becomes clear: These dips have consistently turned into buying opportunities.

Markets tend to react violently to geopolitical shocks – but those reactions are usually short-lived.

Fear drives short-term volatility. Fundamentals drive long-term gains.

Let’s look at a few major geopolitical events from the past decade:

1. Russia invades Crimea – 2014

Russia’s annexation of Crimea in early 2014 was met with global outrage.

Sanctions were imposed. Markets dipped. But the S&P 500? It was down briefly in March, then went on to finish the year up over 11%.

Investors who bought the fear were rewarded within months.

2. North Korea missile tests – 2017

Kim Jong-un launched multiple ICBM tests throughout 2017, some flying over Japan.

Trump responded with “fire and fury.” Markets flinched, but quickly moved on.

The S&P 500 rallied over 19% that year, showing once again that fear was a buying signal.

3. U.S.-China Trade War – 2018-2019

While not a kinetic conflict, the trade war was a geopolitical standoff with real economic consequences.

Tariffs were slapped on billions in goods. Markets dropped several times on tweets alone.

But the trade war didn’t break the bull market – it merely created volatility within a broader uptrend.

4. U.S. and Iran face off – 2019-2020

In January 2020, a U.S. drone strike killed Iranian general Qasem Soleimani.

Oil spiked. Futures plunged. And people braced for war. But a few days later, Iran's response was limited, and tensions cooled.

By February, the S&P 500 hit new all-time highs.

5. Russia invades Ukraine – 2022

This was the biggest geopolitical shock since 9/11.

Markets initially dropped – especially European and global names. But by the end of 2022, U.S. stocks had largely priced in the new reality.

Energy prices spiked and then fell back. Defense stocks rallied. The S&P 500 found its footing and moved on.

6. Israel-Hamas conflicts – Multiple

Periods of heightened conflict in the Middle East – including Israel's military operations in Gaza – often cause brief market wobbles, especially in energy.

But they rarely create lasting damage to U.S. equities. Unless oil prices remain elevated for months (which is rare), these are noise in the long run.

So Why Does the Market Keep Bouncing Back?

Three reasons:

1. Markets price in worst-case scenarios quickly. When geopolitical news breaks, traders often assume escalation. But once the situation de-escalates (or fails to spiral) stocks rebound as uncertainty fades.

2. U.S. companies are resilient. Most geopolitical issues don’t directly affect corporate earnings. Even during oil shocks or military conflicts, consumer spending and business operations often go untouched.

3. Buy-the-dip is embedded. Investors have been rewarded for 15 years for stepping in on weakness.

What Should You Do Now?

Don’t panic. Don’t chase headlines.

Watch sentiment – not news anchors.

If geopolitical tensions rise and stocks dip sharply, that’s often the setup for a sharp rebound.

Avoid piling into defense stocks after they’ve run.

Instead, buy what’s unfairly punished: the high-quality I highlight here in The Million Mission – Nvidia, Meta, Uber – not because they’re immune to news cycles, but because they rebound the fastest when the fear fades.

Remember: headlines fade. Earnings matter.

Unless bombs are falling on corporate earnings, most of these selloffs are just noise.

Stay calm. Stay patient.

And when others panic – get ready to strike.