Ceasefire In Iran Has Stocks Soaring
The stock market hasn’t had a great 2026.
Up until the end of March, the Dow Jones Industrial Average (Dow) was down around 6%.
Most of those losses happened in the month of March following our bombing campaign in Iran.
But the stock market is making a huge comeback.
Last week, a tentative ceasefire was reached between Iran, Israel, and the United States.
A lot of the details need to be ironed out, especially regarding the important Strait of Hormuz.
However, having the different sides of the war talking to each other is a big step towards a calmer Middle East.
The stock market zoomed with the Dow rising 1,325 points on Wednesday.
It was the largest daily gain in the Dow since April 2025.
The stock market is very volatile right now because of the war with Iran.
It seems like every day we’re reaching new highs and lows!
But it’s important to remember the big picture and realize things aren’t as bad as they seem.
Below is a price chart for the Dow going back 12 months.
A couple of parts should stand out.
First, despite the tough 2026, the Dow is still up almost 20% since last April.
Second, the Dow is trading right around the same price as the beginning of March.
So, with all of the volatility and fear, we’re still back where we started about a month ago.
Third, even at the lowest of lows at the end of March, the Dow was trading at the same price seen last summer.
It’s important to keep perspective and not lose sight of the forest for the trees.
However, it’s easier said than done.
The last month has been pretty stressful for investors.
The ceasefire is great news, but it’s very fragile.
Maritime traffic through the Strait of Hormuz, which is critical for oil trading, is still way down compared to before the war.
Fighting could resume at any moment, and could take the stock market down with it.
If your investments are keeping you up at night, then it’s time to find something else.
The following stocks will still rise and fall, but they’re stable and will give you a good night’s rest.
First up is Verizon (ticker: VZ), the massive telecommunications company.
Its is one of the leading wireless carriers in the United States.
The company is expanding into the fast-growing fiber internet space, which is driving more growth for Verizon.
Its 6% dividend yield, the highest among companies in the Dow, will give you some income regardless of what’s happening thousands of miles away.
Verizon’s stock price is really cheap, with a forward price-to-earnings ratio of 9.4x, which is 30% lower than other telecom companies.
Warren Buffett isn’t in charge anymore, but Berkshire Hathaway (ticker: BRK.B) is still a great stock.
It’s a true conglomerate with operations in insurance, transportation, utilities, and manufacturing, just to name a few.
Having such a diverse portfolio of companies means Berkshire Hathaway is very insulated from various shocks happening around the world.
The company had over $400 billion in revenue in 2025, but it’s not too big to keep growing.
Its revenue grew by an average of 9% over the past decade.
And the company is very profitable.
Berkshire Hathaway’s profit margin of 16% is one of the highest among its peers.
You already know about Verizon and Berkshire Hathaway.
While Main Street Capital (ticker: MAIN) is not as famous, it probably should be.
It’s a business development company (BDC), which lends money to small and medium-sized businesses.
BDCs are similar to banks, and Main Street Capital is one of the best.
Main Street Capital’s revenue has averaged 10% growth each year over the past decade.
Its current price-to-earnings ratio is only 9.6x and is near its low for the past 12 months.
Plus, Main Street Capital’s 8.1% dividend is amazing and it pays a dividend every single month!
Do you think the ceasefire is going to last, or do you think more fighting in the Middle East is in store?
Coach Parker
Wealth 360
Category: Stocks
