World War 3?
This Week in the Market
This week is going to be heavily influenced by the escalating conflict between Israel and Iran, which has introduced a new wave of geopolitical risk to global markets. The significance and intensity of the strikes—targeting military and nuclear infrastructure—sets this conflict apart from those in recent years. If this tit-for-tat continues, it has the potential to disrupt oil markets, derail nuclear diplomacy, and inject sustained volatility into equities.
That said, we believe things won’t escalate to a full-scale war. Both sides are posturing, and while the risk of miscalculation is high, there’s still incentive for restraint behind the scenes. Nobody wants escalation.
Buying the Dip
Historically, war-driven market selloffs have created some of the most reliable buying opportunities. When fear peaks and headlines dominate with worst-case scenarios, markets often overshoot to the downside—only to rebound sharply once tensions stabilize. From the Gulf War to the initial shock of Russia-Ukraine, dips driven by geopolitical conflict have typically reversed within weeks or months, rewarding disciplined investors who stepped in when sentiment was at its worst.
Buying the dip during periods of war anxiety isn’t about ignoring risk—it’s about recognizing when that risk is over-discounted. Unless conflict materially impacts global demand or financial systems, history shows these fear-based pullbacks are rarely long-lasting. With oil spiking and volatility up, the setup is classic: bad headlines, oversold conditions, and a growing disconnect between price action and fundamental trajectory.
Dollar-Cost-Averaging (DCA)
Dollar cost averaging (DCA) remains one of the most effective strategies for navigating uncertain markets. By consistently investing a fixed amount over time—regardless of price—investors avoid the pitfalls of trying to time tops and bottoms. In volatile environments, this approach automatically buys more when prices are low and less when prices are high, smoothing out the entry point and reducing emotional decision-making.
This strategy is very good for beginners and experienced alike.
Here's a great video on it: https://www.youtube.com/watch?v=zA44IGc5fLM
Disclaimer: The content in this newsletter is for informational and educational purposes only and should not be considered financial, investment, or legal advice. A4K Capital and its affiliates are not responsible for any financial losses or decisions made based on the information provided.
