It is fair to say that the past month has kept us on our toes. While we saw some impressive resilience in certain sectors, the broader market dealt with renewed volatility. Much of this turbulence stems from the conflict with Iran which led to the closure of the Strait of Hormuz and the largest supply disruption in global oil history causing rising fuel costs and supply chain disruptions.
As we look to April, we remain optimistic about long-term market health. While the rapid rise in oil prices and shifting geopolitical headlines suggest we may not have seen the last of market fluctuations, the underlying fundamentals of the economy remain stronger than the headlines suggest. The upcoming inflation data release later this month will be a key marker for how the Federal Reserve approaches interest rates going forward.
This environment reinforces the value of staying diversified. We are continuing to focus on high-quality companies and view the current volatility as an opportunity.
As always, if there is anything you would like to discuss, please reach out. We would love to hear from you!
"Recent market turmoil underscores the complexity of the economic and investment landscape. Rapidly changing news can quickly alter the narrative from one day to the next. War in the Middle East and soaring oil prices are the latest crisis threatening to upend markets and dampen economic growth.Given the uncertain environment, investors may have doubts about their investment approach. It's natural to seek calmer shores when markets are choppy. But it's equally important to step back, gain perspective and look towards the horizon."
"In a world of intensified uncertainty and dispersion, investing becomes less about forecasting and more about favoring more liquid, high quality assets that can be resilient across a variety of scenarios."
"In 2025, the United States generated a record 4.43 thousand terawatt-hours (TWh) of electricity, a 2.8% increase from 2024. Recent growth has been driven in part by data centers and the industrial sector, but the real story is what comes next: a surge in electricity demand unlike anything seen in decades. The challenge is that most people don’t have an intuitive sense of what a “watt” or “watt-hour” actually represents. In this week’s “Three on Thursday,” we translate these concepts into real-world terms and show just how much new electricity the U.S. will need to power the next phase of economic growth. For greater insight, view the three charts below."