Hi ,

I wanted to share a quick update about what's happening in the world, especially with the recent tensions between Israel and Iran.

What's Happening in the Middle East?

The situation in the Middle East has gotten more complicated recently. Think of it like multiple small fires burning at once there's conflict in Gaza, tensions with Lebanon, and now direct confrontation between Israel and Iran. While this sounds scary, it's important to remember that conflicts in this region, unfortunately, aren't new, and markets have learned to handle this kind of uncertainty.

Here's something reassuring: BlackRock's Geopolitical Risk Tracker (which monitors global political tensions and their market impact) hasn't seen a sudden jump in risk scores following Israel's recent attacks. This suggests that while the risks are real, financial experts don't see this escalating into something that would severely disrupt global markets.

Why Oil Prices Matter to Your Portfolio

When there's trouble in the Middle East, people often worry about oil prices shooting up (since much of the world's oil comes from there). This matters because oil prices have a ripple effect on everything else. When oil gets expensive, it costs more to transport goods, heat homes, and fill up your car, which pushes up prices across the economy and fuels inflation.

Here's the interesting part: despite all the news headlines, oil prices only went up slightly.

Think of it this way: Iran is like a smaller player in the global oil game compared to countries like Russia or Saudi Arabia. Plus, people around the world aren't using as much oil as they used to, which keeps prices more stable. However, we're still keeping an eye on this because if certain key oil facilities get damaged, prices could jump quickly.

Good News for Your Investments

Despite all the geopolitical drama, the stock market actually had a great day on Monday:

• The Dow Jones went up 317 points
• Other major indexes also climbed higher

This happened because oil prices came down and investors felt more confident that the Middle East situation wouldn't spiral out of control.

Inflation is Still Cooling Down

Remember how everyone was worried about rising prices last year? Well, that's actually getting much better. In May, U.S. core inflation (which excludes food and gas prices) barely budged—rising just 0.1%.

Here's what this means in real terms: the Federal Reserve's strategy of raising interest rates to cool down the economy is working. We're seeing prices stabilize for things like housing, flights, and hotels.

Even car prices dropped last month, and car sales fell significantly - showing that higher interest rates are doing their job of slowing down spending.

Many big retailers like Walmart have talked about raising prices, but most are holding back because they know consumers are being more careful with their money right now.

What This Means for Your Investments

The big picture is actually quite positive. With inflation cooling down, there's a good chance the Federal Reserve will start cutting interest rates in the coming months. Lower interest rates are generally good for both stocks and bonds, which means good news for your portfolio.

We are continuing to monitor the situation closely and will keep you updated if anything changes that might affect your investment strategy.

As always, please don't hesitate to reach out if you have any questions or concerns.

Warm regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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