As Iran conflict shakes global markets, Arizona investors feel the pressure

PHOENIX — With global tensions over Iran rising, the markets are trending downward, creating fresh uncertainty for investors across Arizona.

That volatility can feel especially unsettling for people nearing retirement, according to Debra Radway, an associate professor of finance at Arizona State University.

“It is always possible somebody has to push back retirement if they are in the wrong asset allocation and they are close to retirement,” Radway told KTAR News 92.3 FM.

The financial fallout from the conflict in Iran could pose greater risks for Arizonans who lack a clear picture of their portfolio.

“If their investment objectives are clearly defined and they are investing according to those objectives, they should be fine, but a lot of people don’t do that. They don’t even know how they’re investing. They don’t even know what’s in their portfolio,” Radway said.

That’s where working with a trusted financial professional — someone who understands market cycles, Arizona’s unique retirement landscape and the stock market — can make a difference, particularly when feeling stressed or anxious.

Advice for Arizona investors worried about Iran conflict

“You don’t want to overreact, because the market goes up and down all the time,” Radway added. “The last few years, we’ve had such a great bull market that we’ve all gotten accustomed to the market going up and having outstanding returns, but that’s not guaranteed or a give.”

Removing emotion from investment decisions is key, especially for residents who rely heavily on retirement savings to support life in a state where costs like housing, utilities, and healthcare continue to rise.

Even though the S&P 500 has dropped more than 5 percent since the start of the year, Radway emphasized that this kind of movement isn’t unusual. Markets can swing as much as 10 percent in a typical year.

“The markets do go up and down and recently they are going down, but that doesn’t mean that the selloff is going to continue for a long period of time,” Radway said. “The most important thing right now is to make sure your asset allocation is right for where you are in your life.”

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