Geopolitical Volatility + Markets: Investor Outlook

In this quarter’s update, we explore how recent geopolitical developments, particularly the conflict involving Iran, are shaping global markets, energy prices, and investor sentiment.

Investors have had a lot to navigate in recent months. Alongside domestic uncertainty and evolving expectations around monetary policy, rising geopolitical tensions have added another layer of complexity to the market environment.

Navigating Geopolitical Volatility

While periods of geopolitical uncertainty can feel disruptive, history provides important perspective. Markets have experienced a wide range of geopolitical conflicts over time, often reacting negatively in the short term but demonstrating resilience over longer periods.

In many cases, returns following these events have been in line with – or even above -long-term averages. While volatility may increase in the near term, long-term market trends have historically remained intact.

Importantly, not all asset classes respond the same way during these periods. This dispersion can create both risks and opportunities for investors who remain disciplined and focused on their broader strategy.

The key takeaway: While uncertainty is unavoidable, reacting emotionally or making abrupt portfolio changes is often less effective than maintaining a long-term plan.

The Iran Conflict, Oil Prices, and Market Impact

A central driver of recent market volatility has been the sharp movement in energy prices following developments involving Iran.

Oil prices rose significantly due to both Iran’s role as a major global producer and its geographic position near the Strait of Hormuz, a critical shipping route through which roughly 20% of the world’s oil supply passes. Disruptions or threats in this region can have immediate and far-reaching effects on global energy markets.

What This Means for Investors

Geopolitical events are inherently unpredictable, but their long-term impact on markets is often more limited than headlines may suggest.

For investors, the most important principles remain unchanged:

• Stay disciplined and committed to a long-term investment strategy
• Avoid making reactive decisions based on short-term market movements
• Maintain diversification across asset classes and regions

Periods of volatility can be uncomfortable, but they can also create opportunities for those who remain patient and focused.

Our Perspective Moving Forward

We continue to monitor developments in Iran and other global events closely, evaluating their potential implications for markets and portfolios.
As always, our focus is on helping investors navigate uncertainty with clarity, discipline, and a long-term approach.

If you have questions about how current events may impact your portfolio, we’re here to help.

Unless stated otherwise, any estimates or projections (including performance and risk) given in this presentation are intended to be forward-looking statements. Such estimates are subject to actual known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. The securities described within this presentation do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in such securities was or will be profitable. Past performance does not indicate future results