5 charts that put market volatility in perspective

Rising tensions in the Middle East and a sharp move in oil and bond markets have pushed volatility back to the forefront, but history suggests that shocks are often absorbed more quickly than headlines imply. Past drawdowns tied to war, energy spikes and policy surprises have typically been followed by strong recoveries, with most corrections remaining short-lived and only a minority turning into prolonged bear markets.

For long-term investors, missing those rebounds has tended to be more damaging than enduring temporary declines. High-quality bonds can help balance portfolios during periods of slowing growth and shifting rate expectations, especially now that yields provide a stronger income cushion.

In this environment, maintaining diversification across stocks and bonds while reassessing — rather than abandoning — one’s risk posture has historically rewarded investors who stay the course.