With the War Upset Global Economic Momentum?

Markets fell after the Iran attack, with the S&P down about 2% as investors rotated to cash amid geopolitical risk, stretched AI-related valuations, private credit concerns, and elevated earnings expectations.

Sectors diverged: energy held up while materials, staples, healthcare and industrials led losses. Short-term volatility and oil sensitivity are elevated, but broad macro momentum, accommodative policy, and supply potential make a severe global slowdown unlikely unless the conflict escalates dramatically.

Conclusion: It is premature to overhaul a 6–12 month investment strategy. Stay cautious on U.S. equity valuations and bonds over the next year, favor geographic diversification including international and emerging markets, monitor oil and inflation, and separate short-term noise from fundamentals.

For a copy of this week's Doll's Deliberations click on the following link March 9 or go to www.crossmarkglobal.com for additional insight and investment solutions.