Recent stock market action in response to the conflict with Iran serves as a clear reinforcement of Peter Lynch’s sage advice to investors about corrections.
Lynch, the legendary manager of Fidelity’s Magellan Fund from 1977 to 1990, crushed the return of the S&P 500 index during his stewardship. Times are different today. Beating the market was a challenge back then, but it is an even tougher task now. Index topping performance has, in fact, become a rarity. It is not a coincidence that the steady asset growth of passive indexing strategies began around the time that Lynch handed over the helm of the Magellan Fund.
One of Lynch’s competitive edges was that he never let the fear of a potential stock market decline interfere with his deployment of capital. Ever since the U. S’s initial military strike against Iran on February 28, investors have feared that the hostilities would trigger a significant selloff. This is not surprising given the financial networks 24/7, hyperbolic coverage. Sellers motivated by the news must be frustrated. After a brief pullback, the S&P 500 and other benchmark U.S. indices have surged to a series of all-time highs. We are not geopolitical analysts; we assess markets. A sad fact of history is that U.S. wars and conflicts tend to have a bullish impact.
The views expressed in this commentary are those of the author and may not reflect those of the firm. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Withum Wealth Management [“WWM”]), or any non-investment related content made reference to directly or indirectly in the presented material(s) will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from WWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her /their individual situation, he/she/they is/are encouraged to consult with the professional advisor of his/her/their choosing. WWM is neither a law firm nor a certified public accounting firm and no portion of the presented material(s) should be construed as legal, accounting or consulting advice.
Downloads
CIO Vantage Point | May 2026
Recent stock market action in response to the conflict with Iran serves as a clear reinforcement of Peter Lynch’s sage advice to investors about corrections. Lynch, the legendary manager of Fidelity’s Magellan Fund from 1977 to 1990, crushed the return of the S&P 500 index during his stewardship. Times are different today. Beating the market was a challenge back then, but it is an even tougher task now. Index topping performance has, in fact, become a rarity. It is not a coincidence that the steady asset growth of passive indexing strategies began around the time that Lynch handed over the helm of the Magellan Fund.
