By Lewis Krauskopf

NEW YORK, (Reuters) – While fears about a Russian invasion of Ukraine may fuel stock volatility in the near-term, most U.S. market fallsout due to geopolitics will be temporary, if past experience is any indication.

Investors’ concerns regarding a Federal Reserve that is hawkish in fighting rising consumer prices will remain in focus this year. However, developments abroad could cause volatility in markets.

In a note to investors, Sam Stovall (chief investment strategist at CFRA) stated that the equity markets were more vulnerable from the fallout of the war against inflation than from a possible invasion by Ukraine.

In the wake of rising fears about a possible conflict in Eastern Europe, stocks have fallen and investors are now looking for safe haven investments. On Monday, the S&P 500 last was down 1% in choppy trading.

Past ructions from geopolitical events have been comparatively fleeting, CFRA’s research showed. The firm analyzed 24 events since World War II, finding the S&P 500 fell on average of 5.5% from peak to trough in the aftermath of those events.

Stovall reports that the market reached a bottom in 24 days. However, it recovered its losses 28 days later.

Truist Advisory Services looked at 12 historic events. These included the 1979 Iranian hostage crisis, 2003 Iraq War, and 1962 Cuban missile crisis. The S&P 500 was higher a year after those events in nine of the 12 times, with an average gain of 8.6% – perhaps not surprising for an index that has gained about 4,000% since 1980.

“When you look at the history of geopolitical events, they tend to have a short-term impact on the markets, and as long as they don’t drive you into recession, then the markets tend to rebound,” said Keith Lerner, the firm’s co-chief investment officer.

“The conclusion is that we don’t think investors should overreact to this situation by itself.”

Wall Street still worries that some areas of the market could feel the consequences of Russia-Ukraine’s intensified conflict.

David Kelly, JPMorgan’s chief global strategist (NYSE:) Funds said that a Russia-invasion of Ukraine could cause energy prices to rise, and other commodities prices could follow suit. On Monday, oil prices reached a seven-year high.

Also, higher energy prices were on their minds. Morgan Stanley (NYSE:) strategist Michael Wilson, who said a further spike could “destroy demand, in our view, and perhaps tip several economies into an outright recession.”