Market Reminder: Don’t Let Headlines Shake You Out Too Easily
During the Strait of Hormuz disruption, markets were hit with a fresh wave of uncertainty. Oil prices spiked, inflation fears came back, and many investors started questioning whether they should reduce exposure or move out of the market. Reuters reported that the blockade pushed oil prices above US$100 per barrel and created renewed concerns around inflation and global business costs.
But this is where investors need to separate headlines from fundamentals.
Despite the uncertainty, Q1 earnings season has been stronger than expected. According to FactSet, as of 24 April 2026, 81% of S&P 500 companies that reported revenue had beaten estimates, above both the 5-year average of 70% and the 10-year average of 67%.
By 8 May 2026, FactSet also reported that 84% of S&P 500 companies had beaten EPS estimates, with blended earnings growth at 27.7%, the strongest earnings growth rate since Q4 2021 if it holds.
This is why I always remind clients: time in the market is more important than timing the market.
When fear is high, it is very tempting to sell first and ask questions later. But historically, the market often recovers before the headlines become positive again. Those who move out too quickly may miss the rebound.
A few key observations:
1 Corporate earnings are still resilient.
2 Profit margins remain strong, especially among large quality companies.
3 AI continues to support productivity and earnings growth for selected businesses.
4 If oil prices eventually cool, inflation pressure may ease.
5 A new Fed Chair, Kevin Warsh, has been confirmed, and markets are watching closely to see whether future rate cuts become more likely.
Of course, this does not mean we invest blindly. Risks are still real — oil, inflation, interest rates, and geopolitical tensions can still create volatility.
But volatility is not always a reason to run away. Sometimes, it is the price we pay for long-term returns.
The key is not to panic. The key is to stay invested in quality, stay diversified, and make decisions based on fundamentals, not fear.
2May 18, 2026 107
