The Middle East conflict is a fire that seems to die down, only to flare up from embers that continue to burn. Those embers burned brighter over the weekend as the ongoing cycle of attacks between the US and Iran continued. The military strikes of the past week have had little effect on markets to date, but it’s an open question how a low‑grade war will affect investor sentiment if the fighting drags on for weeks or months.
Monthly Archives: July 2026
Book Bits: 11 July 2026
● The Asset Class: How Private Equity Turned Capitalism Against Itself
Hettie O’Brien
Review via The Guardian
Private equity partnerships are groups of individual and institutional investors with deep pockets. O’Brien traces their rise following the era of deregulation inaugurated by Reagan and Thatcher, and details how Blackstone, the Qatar Investment Authority, Macquarie, KKR and others have bought undervalued assets using borrowed money to minimise their exposure to risk. What happens next is that costs, wages and investment in the future are frequently cut to the bone in the cause of exceptionally high returns.
Markets Grapple With Inflation Risk as Gulf Tensions Rise
War‑related inflation risk appeared to be easing when the US and Iran signed a ceasefire three weeks ago, but new military strikes in the Gulf region this week from both sides highlights and strengthens the uncertainty around the outlook. Markets aren’t yet fully persuaded that inflation will continue to rise, but events over the last several days have increased doubt about when pricing pressure will ease.
Iran Conflict Reorders the Bond Market’s Hierarchy of Havens
The Iran war has scrambled the old map of safety, leaving bond investors rethinking which havens still deserve the name. It’s debatable whether the period since the attacks began on Feb. 28 has forged a new normal, but a review of performance across major fixed‑income sectors certainly raises questions about how to manage expectations.
Geopolitical Risk Roars Back: Oil and Yields Lead the Repricing
The U.S.–Iran ceasefire was looking strained before it appeared to break after both sides traded military strikes yesterday. President Trump said on Wednesday that he believes the ceasefire and interim agreement to end the war are “over.” He added that while U.S. negotiators can continue talking with Iran, he personally considers the effort “a waste of time.”
Q2 GDP Expectations Cool—But Some Economists Aren’t Worried
US economic growth estimates for the second quarter have weakened, according to recent nowcasts. The downturn suggests that output will slow in the upcoming Q2 GDP report, based on the median for a set of nowcasts compiled by The Capital Spectator.
Will Markets Start To Price In Lower Inflation Risk?
The Iran war appears to be over, or so the ongoing ceasefire suggests. The oil market is certainly leaning into that view: the price of crude has dropped sharply in recent weeks and begins trading this week at around $70 a barrel for the U.S. benchmark, marking a return to the level on the eve of the war’s start on Feb. 28.
250 Years and Counting…
Total Return Forecasts: Major Asset Classes | 2 July 2026
The outlook for long-term total return for the Global Market Index (GMI) edged up again in June, touching the highest level in recent history. Despite the recent rise, the expected performance remains well below GMI’s realized return over the trailing ten-year window. In other words, GMI performance is forecast to downshift relative to the past decade.
Major Asset Classes | June 2026 | Performance Review
Markets were mixed in June after two solid monthly gains, based on a set of ETFs. Most of the major asset classes lost ground last month, with a handful of exceptions on the upside, led by US real estate investment trusts.