Why the market won't care about Iran for the long-term

History suggests geopolitical tensions don’t derail the market for long.

Transcript

00:00Let's start with your outlook for the market right now, especially given the escalating conflict in the Middle East.

00:06How big of an obstacle is that for stocks, Nancy?

00:09You know, Caroline, I don't think it is in the long term.

00:12I know it frustrates people because the market is pretty agnostic when it comes to war.

00:16But I was managing money in 1990 after Iraq and maybe Kuwait.

00:21The market did sell off.

00:23But then when we actually began, I think it was called Operation Desert Storm, the market took off.

00:29And so I think that in 1991, I think that is illustrative of where we are.

00:35It was short and sweet.

00:36Market viewed it as optimistic.

00:39We were coming out of a recession.

00:40We were in a recession.

00:41The war brought us out of a recession.

00:43So I think there's some of that going on now.

00:46And though we're not in a recession, we do know that the economy is likely to slow.

00:51The second quarter GDP numbers are going to be strong.

00:55But that's a snapback from the first quarter.

00:57And so I'm optimistic because I think AI, productivity-driven enhancements, we've been talking about this for three years.

01:05Our investing theme has been old economy companies that are pivoting to the new technologies and then the suppliers of the new technologies.

01:12And we're beginning to see that play out across sectors on recent earnings calls.

01:17We're beginning to see that play out across sectors.

01:19We're beginning to see that play out across sectors.

01:21We're beginning to see that play out across sectors.

01:22We're beginning to see that play out across sectors.

01:23We're beginning to see that play out across sectors.

01:24We're beginning to see that play out across sectors.

01:25We're beginning to see that play out across sectors.

01:26We're beginning to see that play out across sectors.

01:27We're beginning to see that play out across sectors.

01:28We're beginning to see that play out across sectors.

01:29We're beginning to see that play out across sectors.

01:30We're beginning to see that play out across sectors.

01:31We're beginning to see that play out across sectors.

01:32We're beginning to see that play out across sectors.

01:33We're beginning to see that play out across sectors.

01:34We're beginning to see that play out across sectors.