In recent days, financial markets have experienced quite the rollercoaster ride following the U.S. strikes in Iran over the weekend. As tensions in the Middle East have ramped up, oil prices have surged, and the U.S. dollar has gained strength as a safe haven asset. While there has been some recovery in stock prices, uncertainty looms over Wall Street like a dark cloud on an otherwise sunny day. Investors are now scratching their heads, wondering how to position their portfolios to ride out this turbulence.

Wall Street strategists are digging deep to understand historical patterns during geopolitical crises. Analysts at Morgan Stanley took a close look at how markets have reacted in the past, specifically during events like the Vietnam War and the conflicts in Iraq and Afghanistan. Their findings show that while stock prices initially dip, the decline is often short-lived. In fact, after analyzing 22 distinct events, they found that stocks have typically climbed back up on average over the following months. This suggests that, while the present might feel rocky, the long-term pictures tend to brighten up.

Nevertheless, the analysts also warned that if the Middle East conflict prolongs, it could keep oil prices sky-high, creating new worries about inflation. Higher energy costs could potentially delay any interest rate cuts by the Federal Reserve that many are hopeful for this year. Remember last year when the Russia-Ukraine conflict sent markets into a tailspin? That’s the worst-case scenario folks are keeping an eye on. Currently, Iran accounts for only about 3 to 4% of global oil supply, but its strategic location does impact a major shipping route—the Strait of Hormuz—through which about 20% of the world’s oil flows. If things go awry, this could disrupt supplies and send prices skyrocketing.

Despite all this chaos, many financial experts predict that the market is currently priced for a brief conflict. According to them, oil would need to leap above $100 a barrel for a steep market decline to occur. For most everyday investors, the message is clear: keep things diversified, be patient, and refrain from panicking. It seems the best plan is to hold steady and ride this storm out.

For those with a more cautious eye, Morgan Stanley has a tip: consider placing a heavier bet on healthcare stocks. These are viewed as undervalued and provide a fortress-like defense against an onslaught of risks, including the looming concerns about artificial intelligence. On the other hand, Wells Fargo strategists have a different perspective. They argue that history suggests investors should pounce on these geopolitical slumps and stock up on shares while prices are low. After all, they say, sometimes the best time to buy is when others are running for the hills.

So, as the clouds of uncertainty gather around the financial markets, investors are left with plenty to think about. Are they prepared for what lies ahead? With a little patience and a good mix of investments, they might just weather this storm and emerge stronger on the other side. And who knows? It could be an excellent time to buy a few stocks, especially in the healthcare sector. Time will tell, but for now, the best investment advice might just be to keep calm and carry on.