On Investing

The Markets Shrug at Geopolitics, for Now

Jun 27, 2025
Mike Townsend, Schwab's managing director of legislative and regulatory affairs with over 30 years of experience in Washington, joins to discuss the current geopolitical climate and its effects on financial markets. They dive into how U.S. involvement in Middle Eastern conflicts influences investor sentiment and market reactions. Townsend highlights the evolving trade policies, potential deregulation, and looming cryptocurrency regulations, while also assessing labor market trends in light of economic indicators.
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INSIGHT

Markets' Calm Amid Middle East Tensions

  • The market has shown remarkable calm despite heightened geopolitical tensions in the Middle East.
  • This calmness partly stems from a quick reversal in oil prices after initial spikes due to fears of supply disruptions.
INSIGHT

Retail Traders Boost Market Momentum

  • Retail traders' 'buy the dip' mentality helped pull institutions along during recent equity market gains.
  • Institutional investors appear only neutral in risk, suggesting potential for further bullish momentum.
INSIGHT

Temporary Calm in Bond Markets

  • Calm in bond markets has supported equities despite geopolitical and trade uncertainties.
  • However, experts expect volatility to increase as key dates and policy decisions approach.
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