Prior to the escalation of conflict in Iran, market attention was firmly focused on inflation, highlighted by two report releases this week: January’s Personal Consumption Expenditures (PCE) and February’s Consumer Price Index (CPI).

Mark Twain allegedly coined the phrase, “History doesn’t repeat itself, but it often rhymes.” No doubt, the Middle East military escalation this past week rhymed with our history in the region. Previous conflicts of this nature have added volatility to markets without a long-term U.S. economic impact. However, since these events have an impact on the price of oil, assessing the impact in the short-term and long-term is key for our economic and portfolio outlook. Such moments validate our ongoing belief in a broad, diversified portfolio for clients.