Adding these stocks to your 401(k) could protect against crises like a war with Iran

MarketWatch

by Brett Arends

February 20, 2026

AI-Generated Deep Dive Summary

Adding energy stocks to your 401(k) could offer protection against geopolitical crises such as a potential war with Iran. Historical data shows that energy stocks often perform differently from broader market trends, providing a cushion during times of instability. By including these stocks in your portfolio, you may not only reduce risk but also potentially see profits depending on the economic environment. Over the past century, energy stocks have demonstrated a tendency to zig when the rest of the market zags, making them an effective hedge against geopolitical tensions. For instance, during oil crises and conflicts involving major producers like Iran, energy stocks have historically outperformed or at least held their value better than broader indexes. This behavior challenges conventional financial advice that often emphasizes broad index funds as the sole stock exposure. For investors concerned about market resilience during uncertain times, diversifying with energy stocks can add stability to a retirement portfolio. While past performance doesn’t guarantee future returns, incorporating sector-specific investments like energy stocks can help balance risk and reward in volatile markets tied to global events. This approach offers a practical way to adapt traditional investment strategies for greater financial security.

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Originally published on MarketWatch on 2/20/2026