During Times of Market Jitters, It Wouldn’t Hurt to Remember the Pyramids
Growing up, my family loved to travel, and I had the good fortune to visit Egypt in the early 1980s. There we toured the great pyramids in Giza just outside of Cairo. We had a wonderful tour guide who seemed to have almost infinite knowledge of the structures. But the most profound statement she slowly spoke with a fascinating Arabic accent was this: “Man fears time….but time fears the pyramids.” Ah yes, man-made structures that are over 4,000 years old will surely get the attention of Father Time.
At this moment of such turmoil in the Middle East, it seems to me that keeping the long-term time perspective is important. If you are still digesting the headlines about an “oil shock,” and now know more about the Strait of Hormuz than you ever expected, you’re not alone in feeling a bit uneasy. Sharp moves in oil prices tend to grab attention quickly because energy touches almost every part of the economy from transportation costs to inflation expectations. Markets often react fast to these headlines, and the first move is frequently downward. That initial reaction must be separated from the typical long-term result.
Historically, oil spikes create short-term volatility but mixed long-term market outcomes. Investors tend to assume that higher oil prices automatically lead to recession or prolonged stock declines. Sometimes they do contribute to economic slowdowns, but more often the market digests the shock over time as businesses adapt, supply adjusts, and policymakers respond. Markets are remarkably good at recalibrating once the initial uncertainty fades.
It’s also worth remembering that the stock market represents the entire economy, not just the cost of fuel. While higher oil prices hurt some sectors, they benefit others, particularly energy producers. Meanwhile, many companies today are less sensitive to oil than in past decades. Technology, healthcare, and service businesses make up a much larger portion of the modern market than they did during the oil crisis of the 1970s.
For long-term investors, episodes like this often feel worse than they ultimately turn out to be. Markets dislike surprises, and oil shocks certainly qualify. But volatility is not the same thing as permanent damage. More often than not, these moments become just another bump in the market’s long upward journey.
The key is perspective. If your investment horizon is measured in years rather than weeks, the most productive response is usually patience rather than reaction. Markets have climbed through wars, inflation spikes, recessions, and multiple energy crises. The lesson history tends to repeat is simple: uncertainty creates headlines, but time creates returns. A solid investment strategy will stand the test of time, just like the great man-made structures that have stood watch over Giza for thousands of years.
Fun Fact: Speaking of time. The Great Pyramid of Giza was the tallest structure on Earth for more than 3,800 years. Built around 2560 BC, it stood as the world’s tallest man-made structure until the Lincoln Cathedral in England surpassed it in 1311. That means the pyramid held the record longer than the entire span of the Roman Empire, the Middle Ages, and the early Renaissance combined.
