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It’s no secret that markets don’t like uncertainty. It’s also no secret that markets have been facing a lot of it lately as a result of the pandemic, inflation fears and more recently, War in the Middle East. While there’s no way to accurately predict how long uncertainties will persist or how markets will react in the future, it can be helpful to take a look back to gauge how markets have responded to major events in the past. With the help of RBC Global Asset Management (RBC GAM), here we’ll focus on equity market reactions to acts of war and terrorism. In a recently released commentary, RBC GAM noted that acts of war rarely have large or lasting impacts on markets, though periods of heightened uncertainty are common. The following chart looks at how U.S. equity markets have reacted historically.

Real estate vs. equities: Which builds more wealth? Real estate has had an exceptional run over many decades, driven by low interest rates, limited supply and strong demand. But in today’s housing markets, with interest rates up compared to the last 15 years and affordability stretched, future gains may not match the past. Equities, on the other hand, continue to be powered by earnings, innovation, and global momentum. Yes, market downturns are a normal part of the journey, but for long-term investors, the trend has consistently been upward.