Ian Venzon, AVP at Pence Capital Management explores the economic implications of recent developments in Iran and offers his expectations for the U.S. markets.

• Escalating geopolitical tensions involving Iran have contributed to upward pressure on global oil prices. Despite this, the US economy has become less sensitive to oil shocks over time.
• Consumer spending on gasoline has steadily declined, which is muting traditional fuel demand despite periods of price volatility.
• The dominant driver behind strong earnings expectations and overall equity market resilience remains artificial intelligence, with major players viewing this as the strategic arms race.

With markets reacting to the onset of the Iran war, we invited Gene Peroni of Peroni Portfolio Advisors to the Access to Alpha podcast series where he put today’s volatility in perspective and offered his thoughts on what may lie ahead.

3 Key Takeaways:

1. Investors ought to focus on longer-term trends, as opposed to often short-lived, event-triggered corrections.
2. Since October 2025, many traditional cyclicals began leading while Technology corrected … until recently.
3. Gene views the recent pullback as constructive (and arguably overdue) as it reined in price and sentiment excesses and positions the market to build support at incrementally higher levels.

We invite you to listen to Erin Spalsbury, Head of Investment Grade at Insight Investment, as she shares her expectations for 2026 and select areas worth watching. In short, Insight is focused on managing risk while seeking consistent income and long-term value.