Weekly Market Monitor
Chart of the Week: Short-Lived Sell-Offs
As the conflict in the Middle East has intensified, investors have been grappling with its potential implications for markets. Historically, the impact on equity markets has depended on whether the conflict led to a prolonged oil supply disruption, but geopolitical shocks have generally been short-lived, with the potential for sharp rallies once uncertainty eases. Given the difficulty of timing geopolitical events, we continue to recommend staying invested but emphasize the need for robust portfolio construction and diversification to mitigate the impact of these shocks.
Source: Goldman Sachs Global Investment Research and Goldman Sachs Asset Management. As of January 26, 2026. Chart shows the S&P 500’s performance several months before and after 15 geopolitical shocks since 1970. Diversification does not protect an investor from market risk and does not ensure a profit. Past performance does not predict future returns and does not guarantee future results, which may vary. Illustrative Purposes Only. 'We' refers to Goldman Sachs Asset Management.
Download the full document, which includes the chart of the week and insights on market developments. On pages 3 and 4, we further recap equity sector, size and style returns, global index returns, as well as rates and spread movements and a monthly snapshot of global equity valuations.
Equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. Different investment styles (e.g., “growth” and “value”) tend to shift in and out of favor, and, at times, the strategy may underperform other strategies that invest in similar asset classes. The market capitalization of a company may also involve greater risks (e.g. "small" or "mid" cap companies) than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements, in addition to lower liquidity.
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