Markets need the bears to prove their point. Buy the dip.

It’s a source of some confusion (to me, at least) that the Iran war, the de facto closure of the Strait of Hormuz, and the resulting impact on the energy market, have been greeted with general equanimity by global equity markets.

But I suspect it’s mostly down to this: these days, markets need proof. 

“Buy the dip” is often parodied as a kneejerk reaction from mindless traders. 

But since around about 2009, it has been the correct response to every drop in the market. 

Every scare has been a buying opportunity, and the people who bought have made money.

You can hardly blame investors for their caution. I mean, a war in the Middle East is a big deal but so was a war in Europe (which is, of course, still ongoing), and a global pandemic was bigger than either of them, and the correct financial answer was still “just hold your nose, and keep buying.”

John Stepek Bloomberg April 21, 2026 

https://www.bloomberg.com/news/newsletters/2026-04-21/markets-are-forward-looking-but-not-psychic

We’re not in Kansas any more.

The Iran Relief Bounce: Is This Time Different?

There’s big change—a huge increase in retail trader participation. Millions of brokerage accounts were opened in 2020 and 2021, largely by young men, in a perfect storm of commission-free trading, boredom, stimulus checks and face-ripping volatility. 

They’ve become a force.

Spencer Jakab WSJ April 20, 2026

https://www.wsj.com/finance/stocks/the-iran-relief-bounce-is-this-time-different-0f62b271

Niall Ferguson: Markets are trading like the war is over

https://englundmacro.blogspot.com/2026/04/niall-ferguson-markets-are-trading-like.html

21 april

https://englundmacro.blogspot.com/2026/04/21-april-birgitte-bonnesen-frias-av.html