On Feb. 28, 2026, the United States (US) and Israel launched a surprise attack on multiple cities across Iran. Within days, oil prices surged from around $70 a barrel to well over $100. Like many others, I was stunned to see diesel prices at the gas station spike above ₱100 per liter—and there’s a very real chance they could keep climbing. Many asset classes have tanked since the attack; locally, the Philippine Stock Exchange index (PSEi) has retreated to the 6,000 level. In this time of turmoil, many are wondering: how should I invest to keep my wealth safe?

In his book “Wealth, War, and Wisdom,” Barton Biggs writes that diversification is the best tool investors have to protect themselves during wartime. No single security or asset class can guarantee safety. History shows that investments appearing conservative and dependable in “normal” times often fail once political order, currency stability, or property rights begin to break down.

It is often cited that over the past century, stocks have generally outperformed most other asset classes. While true for many markets, wartime can trigger terrifying portfolio events. In 1914, the London Stock Exchange shut down for five months. During World War II, Japanese stocks lost 96 percent of their real value. Stocks offer the best long-term protection against inflation, but they remain vulnerable to market closures, business failures, and sudden political shifts.

Bonds are generally considered safer, but they are not immune. Governments can, and do, default on their payments. Sri Lanka did exactly that in 2022 while struggling with its worst financial crisis in recent history.

Cash feels secure because of its immediate liquidity, but it exposes you to the “silent killer”: inflation. After World War I, hyperinflation in Germany destroyed the mark’s purchasing power. It was said that a wheelbarrow full of cash couldn’t buy a newspaper, and farmers refused to sell produce for currency because it had become worthless.

Gold can help preserve value during a crisis and, in extreme cases, functions as an emergency medium of exchange. However, history also shows its limits. Physical gold can be confiscated by governments, seized by occupying forces, or stolen when social order breaks down.

If every asset class carries risk, the solution is to diversify. You must ensure that no single mistake, country, asset, or scenario can wipe you out. While stocks are best for growing real wealth, they are prone to volatility and regime change. Bonds help steady a portfolio and are less likely than stocks to go to zero, yet they remain exposed to default. Cash is most useful in the short run for spending power but is the most vulnerable to currency collapse. Finally, gold preserves value when money stops working, but it can make you a target for theft or confiscation.

History reminds us that during war, there is no such thing as certainty. Conflict has a way of exposing the weaknesses of "safe" strategies. No one can build a portfolio that is immune to every crisis, but by diversifying, you improve your chances of weathering the storm without permanent damage. Hopefully, we’ll never have to witness such events in our own backyard—but it never hurts to be prepared.