The stock market has shaken off its jitters over Iran, but analysts say investors could still be in for a bumpy ride this year.
Stocks are back near records, a sharp turnaround after Iran’s missile attacks sent futures tumbling Tuesday evening. Major averages rebounded midweek after President Donald Trump said the U.S. doesn’t seek a war with Tehran.
As investing pros looked ahead at the end of last year, they saw a 2020 full of uncertainty – something investors hate – because of trade tensions with China and a presidential election in the U.S.. Now hostilities with Iran have thrown another unsettling element into the mix.
“Investors have to stay the course because it will likely be a volatile year,” says Ephie Coumanakos, co-founder and managing partner of Concord Financial Group.
Investors are turning their attention to a series of events this week that could serve as the next catalysts for volatility. A “Phase 1” trade accord with China is expected to be signed, but the two sides haven’t finalized a deal yet.