11 Low‑Liquidity Stocks That Outperform Iran Crises
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- Mark Hulbert compiled a list of 11 stocks that averaged positive returns during three recent geopolitical crises: the current Iran conflict, the June 2025 Iran bombing, and the first 12 days of Russia’s 2022 invasion of Ukraine.
- Robert Stambaugh and Lubos Pastor’s research on liquidity sensitivity underpins the selection, asserting that stocks with low liquidity sensitivity in one crisis tend to retain that trait in future crises.
- Oil-and-gas companies were deliberately excluded from the list because their crisis performance is driven by oil price movements rather than market liquidity changes.
- Kroger posted the highest average crisis return at +16.8%, while Target and Lockheed Martin delivered +6.5% and +5.9% respectively, illustrating the range of sector performance.
- Broadcom, Adobe, and Microsoft—all technology firms—showed modest gains (+3.6%, +2.6%, +2.3%) despite generally lower liquidity risk, indicating tech exposure can still be defensive.
- Hulbert Ratings required each stock to be recommended by at least two tracked investment newsletters, adding an extra filter for credibility.
Why it matters: Investors looking to shield portfolios from the market‑depth squeeze caused by geopolitical shocks gain exposure to the 11 identified stocks, which historically rise when liquidity dries up. Conversely, those holding them for long‑term outperformance may see modest or negative returns once normal trading depth returns, while energy‑sector investors miss out on the defensive set.
