Late Tuesday night, Iran fired more than a dozen ballistic missiles at two American airbases in Iraq. However by morning, there were no reports of American casualties at either base, mitigating the likelihood of escalation.
The attacks sent Dow futures down as low as 400 points Tuesday night. But when investors awoke Wednesday morning, futures were only down slightly.
Iran's Islamic Revolutionary Guard Corps said the attacks were in response to the drone strike on Jan. 3 that killed Iranian General Qasem Soleimani.
TheStreet's Katherine Ross sits down with Art Hogan, National Securities' Chief Market Strategist, to explain the market’s response.
“What the market hates is uncertainty, and there was a great deal of uncertainty last night, when we didn’t know the amount of damage and whether there was a loss of lives,” said Hogan.
This morning, however, the market had more information and therefore less uncertainty. “This has gone from being dynamic to static and the market is okay with that,” said Hogan.
According to Hogan, “his was Iran’s way of saving face at home and saying, ‘Yes, we retaliated.’ The most important thing is they’ve said ‘This is all we’re doing’ for the time being.”
Finally, Hogan has some key pieces of advice for investors. The most important? Don’t panic. “Separate the news from the noise.”
But if you are wary of the headlines, Hogan suggests increasing your investments in gold or raising your levels of cash.
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