State Street Global Advisors issued a stark warning that the market fallout from the ongoing war in Iran will likely eclipse the tariff-driven volatility of 2025, even if the fighting resolves swiftly.
- USO shares are moving. See the chart and price action here.
‘Short Shocks, Longer Echoes’
In a March note to clients titled “Short Shocks, Longer Echoes,” the asset manager argues that investors should brace for a slower and more uneven recovery this time—without the quick policy pivot that helped stabilize markets last year.
The 2025 tariff reversal sparked a furious rally in high-beta names while high-quality defensive plays lagged. But State Street cautions that historical parallels will mislead market participants.
“Although there may be some common characteristics in these two environments,” analysts wrote, “it is not wise to draw direct inference for returns.”
Unlike last year’s short-lived tariff shock, the current conflict has no clear off-ramp, no diplomatic deal on the table and …
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