The war in Iran has represented a major source of uncertainty for investors for weeks. It’s driven up oil prices, interrupted the operation of a major waterway for industrial transit, and generally hurt investor appetite for stocks — particularly those that rely on growth environments to thrive.

But a move this week by President Donald Trump brought some relief to the stock market. All three major indexes roared higher after Trump announced that he would suspend attacks in Iran for a period of two weeks. The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average each jumped more than 2.5% on April 8 — the trading session immediately following the news. The Dow even posted its biggest gain in a year.

Still, geopolitical uncertainty isn’t over: The U.S. and Iran are involved in negotiations, and Trump said in a Truth Social post that the U.S. military will remain in place until Iran complies with “the real agreement.” And if Iran doesn’t comply, the U.S. military response would be stronger than ever, Trump wrote.

All of this makes it difficult to predict the stock market’s next move. Against this backdrop, here’s how to successfully invest now.

Zoom out for a long-term view

First of all, it’s important to zoom out and take a long-term view as you consider companies to potentially invest in and the general environment. History shows that conflicts, wars, and other periods of trouble don’t last forever, and strong companies and major indexes always recover. A look at the S&P 500‘s path over the past 20 years, spanning times such as the financial crisis of 2008 through the coronavirus market crash in 2020, illustrates my point.

^SPX data by YCharts

So, while headwinds can hurt stock performance and even corporate earnings in the near term, quality companies can manage these difficult times and go on to recover and advance over the long haul. This means you still should buy stocks and hold onto current positions in uncertain markets — as long as they involve quality companies.

What do I mean by “quality”? I’m talking about companies that have delivered growth over a number of years and have established a strong competitive position in their markets. These players should also have solid prospects. A healthy financial situation is key too, allowing the company to invest in growth and weather tough moments. You can find such stocks in any industry, from growth-related ones such as tech to areas seen as safe havens such as healthcare.

Companies that have proven themselves

And two great examples are e-commerce and cloud computing giant Amazon (AMZN +2.02%) and healthcare mammoth Johnson & Johnson (JNJ 1.18%). They’ve demonstrated their ability to handle tough markets and deliver significant returns to investors over time, as shown in the 20-year view of their stock performance.

AMZN data by YCharts

Another smart addition to a portfolio right now is the dividend stock. These players offer you passive income, no matter what the general market or even that particular stock is doing. The best place to look for these is in the list of Dividend Kings, as they’ve proven their commitment to dividends by increasing them annually for at least 50 years. Beverage leader Coca-Cola is a well-known example.

Finally, in tough markets and even during better times, it’s important to focus on valuation. The one positive point about a difficult market is that, often, you can pick up quality companies for bargain prices. Today, artificial intelligence (AI) stocks offer a particularly interesting opportunity for investors, as they — the leaders of market gains over the past few years — were among the first to suffer during the first-quarter declines.

Nvidia (NVDA +2.59%) is the leading AI chip designer, and moving forward, its broad product portfolio should make it the key player powering AI of the future.

Nvidia

Today’s Change

(2.59%) $4.76

Current Price

$188.67

Meanwhile, the stock is trading around its lowest in a year, at 21x forward earnings estimates. At these levels, it’s a no-brainer buy for the growth investor aiming to benefit from the next stages of the AI boom.

So, today, whether the market continues to rally or if it returns to the doldrums or a state of volatility for a while, don’t worry: This plan, focused on buying quality stocks at reasonable valuations and adding dividend players to the mix, should set you up for a long-term win.