Latest investment update

Published: March 2026

Recent moves in markets are reflecting the latest geopolitical developments in the Middle East. We maintain our focus on the benefits of diversified investments for long-term growth. As with all conflicts, our thoughts are with all those affected.

Key points

• The market reaction

Conflict in the Middle East has caused market volatility, with oil prices rising.

• Setting the situation in context

Markets tend to recover from geopolitical crises. We see volatility as a natural feature of investing.

• Our investment convictions

Diversification by holding different assets such as gold, aims to provide resilience. Our investment decisions remain based on fundamentals, not headlines.

Financial markets are volatile and attempting to price a rapidly evolving situation across a range of financial assets.

US equity futures are modestly lower and oil prices have risen.

These moves are notable, but not disorderly.

It is important not to let the gravity of geopolitical events distort investment judgement. As the team at Coutts who manage Royal Bank investments wrote in a recent Coutts CIO Weekly, “geopolitical upheaval can come at a very heavy price for the individuals and populations involved. However, in modern history, geopolitical flashpoints have rarely had a lasting impact on financial markets.”

Since 1956, we have identified 42 major geopolitical flashpoints. Despite the immediate uncertainty each one created, US equity markets – often seen as the engine for global growth – have, on average, posted positive returns of +5.4% in the six months following the event.

We continue to observe and plan. Before the conflict began we added gold to our investments. Gold is a good ‘safe haven’ and has the potential to perform well, especially during times of geopolitical tension such as we are currently seeing in the Middle East.

We also recently added more to emerging market equities where we see good growth opportunities, especially in technology-heavy economies such as South Korea and Taiwan.

We are continuing to monitor developments closely — particularly anything that could have a lasting impact on energy supply, inflation, or global growth. We will keep you informed should that assessment change.

Here you’ll find our previous investment market updates.