In uncertain times, clarity instills confidence
In celebration of Financial Literacy Month, we recognize the value of staying informed about the many factors shaping wealth strategy. I’d like to share our view on how recent global events are affecting inflation, markets, and interest rates.
The Iran War’s resolution and its potential to push up oil prices are key variables in determining Federal Reserve policy. A decline in energy prices could give Fed officials the cover they need to pursue modest rate cuts. But that outcome doesn’t appear close at hand.
As I write this, President Trump seems inclined to support the closure of the Strait of Hormuz. This would mean higher oil prices, reduced revenue for Tehran, and tighter global oil supply. Trump’s calculus is difficult to decipher, but he may believe a prolonged closure would compel more NATO members — many of them dependent on Middle Eastern oil — to step up their U.S. support.
History offers some reassurance about the relationship between military conflict and equity markets. In 2003, stocks performed well during the second Gulf War. It’s important to note that the market was different back then: Equities had been beaten down over the prior three years. The S&P 500 had fallen more than 40% since 2000, making valuations much more attractive.
Today’s setup is less forgiving. Despite solid profit growth in Q4 2026, we think some U.S. equities are still overvalued. Without a sharp acceleration in earnings or a significant drop in long-term interest rates, it’s difficult to see how stocks can replicate the strong returns of the past two years. Our investment team has looked at taking gains in international positions and reallocating to areas with potentially better value. Although we recommend a cautious posture, we remain confident in our well-diversified portfolio.
At Gentry, we’re committed to educating clients about how global and market volatility impact their wealth. If you ever have questions or concerns, don’t hesitate to reach out.
New to the team
Raegan Hermreck, MBA | Financial Planning Associate
When it comes to delivering personalized wealth planning and investment guidance, Raegan supports Gentry advisors in a number of ways. She assists with analysis, prepares financial plans, and ensures they have everything they need to meet with clients.
Addie Hahn | Client Service Associate
Addie is a graduate of Grand Canyon University, where she established a solid educational foundation in finance, economics, and business analytics. She assists clients in maintaining their accounts and scheduling wealth planning meetings.
Gentry in the community
On March 28, we proudly cosponsored the Heartspring Gala. This year’s event was a smashing success, raising funds that will provide life-changing care, education, and therapy to children with neurodevelopmental needs.
Featured Article
Delegating investment management
Even for seasoned investors, managing a portfolio while balancing a career and family can be challenging. Entrusting this responsibility to a professional brings not only peace of mind, but also the potential for more favorable long-term results.
We partner with Sevasti Balafas, CEO and founder of GoalVest Advisory, to provide investment management solutions for Gentry clients. She recently shared her perspective on this topic in an article for Kiplinger.
With extensive experience in wealth management, Sevasti explores why delegating investment management is a smart choice for busy individuals, especially amid global uncertainty. Experienced, professional advice can make all the difference by reducing the stress of market fluctuations and helping you achieve financial goals.
If you’ve been wondering whether to manage your own investments or seek professional guidance, this is a must-read.
