By Paul R. La Monica
Here we go again. Remember that word uncertainty? It shook Wall Street over tariffs and AI. Well, it was back Monday. This time all the hand-wringing was over this weekend's attack on Iran by the U.S.
Oil was up, stocks were down. Treasury yields inched up. All eyes are on gold and the dollar.
And nerves are on edge. Or were on edge. The S&P 500 and Nasdaq Composite turned positive by midday Monday -- and the Dow Jones Industiral Average was well off its lows.
Still, now is the time to pause, take a deep breath and maybe heed a tidbit of time-honored advice from a handful of Wall Street veterans: Buy the dip.
Scooping up hard-hit stocks has worked before in trying times, the experts said. And it can work again.
BTIG's Jonathan Krinsky is so convinced that he wrote a report and titled it "When Missiles Fly, Time to Buy,"
Krinsky, the company's chief market technician, argues that "sharp moves on geo-politics are not durable, and while today will likely be messy, we are inclined to think this move is more likely a tactical opportunity to buy than sell."
Westwood's Adrian Helfert points out that conflict in the Middle East is nothing new -- and that history has shown those who stay calm in times of war usually end up making good money.
"Staying invested has been the right call in every comparable event since 1990," wrote Helfert, chief investment officer of multi-asset strategies.
"Across five similar geopolitical shocks, equities were higher twelve months later in four out of five cases. Selling into the initial panic has historically been the most-costly decision an investor can make."
Longtime market strategist Ed Yardeni is sticking with the "Roaring 20s" theory -- tech innovations like AI and consumer optimism will keep fueling that market. The fighting in the Middle East is a blip on the radar screen.
Yardeni looked at the attack through the lens of oil. He's confident the spike in crude prices will be temporary.
"Oil prices are likely to fall in the coming months assuming this war is short, as it's bound to be," he wrote, adding that this will help bring headline inflation figures closer to the Federal Reserve's annual target rate of 2%.
"Lower gasoline prices will boost consumers' purchasing power in the U.S. and around the world," Yardeni added.
Ivan Feinseth, of Tigress Financial Intelligence, thinks Wall Street is underestimating how big of a role the Fed is willing to play in the market.
Feinseth said the central bank might be very willing to support stocks -- and, of course, the economy -- by cutting rates if the conflict drags on and keeps the market off balance.
"Weakness in jobs data and potential uncertainties over the impact of geopolitical events could support a preemptive negative economic market-impact rate cut even if the oil--driven inflation narrative and price elevation continue," wrote Feinseth, Tigress's chief market strategist.
A rate cut would be even more likely if the Senate confirms Kevin Warsh to succeed Jerome Powell as Fed chair. And it may mean more rate cuts than the market is currently pricing in over the course of this year.
Krinsky, Helfert, Yardeni, and Feinseth make specific points about the fighting's impact on Wall Street. But their takeaway is essentially the same: Buy the dip.
Now, you have decide what's best for yourself.
Write to Paul R. La Monica at paul.lamonica@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 02, 2026 12:56 ET (17:56 GMT)
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