If Iran war headlines have you rattled and worried about the stock market and your investments, Dave Ramsey says to do this to make it through

Geopolitical tensions often rattle investors. Headlines about conflict, inflation or economic slowdowns can send markets swinging — and portfolios with them.

On his show, finance guru Dave Ramsey said reacting emotionally to those headlines may be one of the worst investing mistakes people can make.

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During a recent episode of The Ramsey Show, Ramsey addressed investor fears tied to tensions involving Iran. He advised investors to turn off the news and stick with your long-term plan.

“If every time you get afraid by watching the news, quit watching the news,” Ramsey said. “Turn off your television … you should not change a thing.”

Ramsey argued that market dips triggered by geopolitical events are usually temporary and rarely justify abandoning a long-term investment strategy.

Short-term shocks rarely change long-term trends

Ramsey pointed to the market crash during the COVID-19 pandemic as a recent example.

When the global economy shut down in early 2020, stocks plunged sharply, but markets rebounded quickly.

“Fifty-seven days later, it was back up to where it started,” Ramsey said on his show (1).

History suggests that kind of rebound isn’t unusual. According to Morningstar research, the stock market has endured numerous crashes over the past 150 years — yet it has consistently recovered and eventually reached new highs (2).

Morningstar’s long-term analysis found that even after severe downturns like the 1929 Wall Street Crash, the S&P 500 (or its predecessors) eventually rebounded, although this took years.

Even a period of long-term doldrums — 2000-2009 is known to investors as “the lost decade” — ultimately resulted in recovery and a market that surpassed previous highs.

The 2000s saw both the 2000-2001 dot-com bust and the 2008 financial crisis, and also coincided with U.S. involvement in conflicts in the Middle East that wreaked havoc on global energy markets. It’s understandable that the prospect of a repeat would rattle millennials and middle-aged adults who remember that time, including the parent of a college-aged child who called into Ramsey’s show.

Riding out that period required patience and risk tolerance from investors, but they were rewarded in the end. The market bounced back after the dot-com bubble burst, but hadn’t yet reached its previous highs when the 2007-2009 crash came along and knocked it back down. Full recovery was not until May 2013 — more than 12 years after the initial bust (2).

Those recoveries are one reason why investors should not panic when markets drop.

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Why panic selling can cost you

Selling investments during market declines may feel like a way to limit losses. In reality, experts say it often locks those losses in.

Research from Morgan Stanley shows how damaging this behaviour can be over time. Investors who stayed fully invested from 1980 through early 2025 earned an average annual return of roughly 12%. But those who sold during downturns and waited for signs of recovery before reinvesting earned closer to 10% annually.

That two-percentage-point difference may sound small, but compounded over decades, it can mean dramatically different outcomes. In Morgan Stanley’s example, a steady investor contributing $5,000 annually would have about $6.1 million, compared with roughly $3.6 million for someone who repeatedly moved in and out of the market (3).

Analysts at The Motley Fool say the problem is simple: investors who panic sell during downturns often miss the market’s strongest recovery days (4).

Those rebounds can happen quickly — sometimes before the crisis that triggered the sell-off has even ended.

Even seasoned investors can find it difficult to watch their portfolios decline during turbulent times. Geopolitical crises, rising interest rates or economic uncertainty can amplify anxiety.

But reacting to those fears can lead to classic investing mistakes: panic selling, moving to cash and failing to reinvest when markets recover.

These behaviours are particularly dangerous for long-term investors saving for retirement, because missing even short periods of market recovery can significantly reduce long-term returns.

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Staying invested through uncertainty

The lesson from decades of market history is clear: volatility is expected, but abandoning a long-term strategy can be costly.

Instead of reacting to daily headlines, it’s likely best to stick to a financial plan based on personal goals, risk tolerance and time horizon.

For investors with many years before retirement, downturns may even create opportunities to buy assets at lower prices and benefit from future recoveries.

For those closer to retirement, a more conservative portfolio may make sense — but that allocation should be based on long-term planning, rather than reacting to current events.

Ramsey’s core message is simple: market volatility is part of the investing journey, and reacting emotionally can do more harm than good.

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Article Sources

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(1) The Ramsey Show highlights; (2) Morningstar; (3) Morgan Stanley; (4) The Motley Fool

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.