Consumer Discretionary Vulnerability

The military conflict in Iran is roiling markets around the globe. In this episode, host Mike Townsend is joined by Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, to unpack what the war means for investors amid volatile markets. Kevin shares his perspective on how geopolitical uncertainty is driving sharp swings in oil and gas prices; why markets in the U.S. have so far been more resilient than those in Europe and Asia; and how rising energy costs could affect inflation, consumer spending, and the labor market. He also discusses how the war could impact the ongoing sector rotation toward energy and why bond yields are rising. And he shares some practical takeaways for investors—from why reacting to headlines can be dangerous to which economic indicators are most important to watch as the conflict evolves.

Mike also provides updates from Washington, including the possibility of companies receiving tariff refunds this spring, the ongoing stalemate over funding for the Department of Homeland Security, and how the Senate primaries in Texas have kicked off the busy midterm election cycle. 

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.

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