Economic Update 3/12/26
- 12 minutes ago
- 2 min read
Dear Dear Clients of Blue Summit,
Due to the increased geopolitical turbulence of late we wanted to reach out and provide market context, ensuring you stay informed and grounded about your investments with Blue Summit.
Most of the volatility we have seen in the investment space so far has been restricted to the cost of oil. Blue Summit investments have no direct exposure to the price of oil and therefore we are somewhat sheltered from this current volatility. However, oil remains a key input in the economy and any shock to its supply/price can send ripples through the economy. The size of the ripples is dependent on the duration and magnitude of the disruption.
If this conflict is brief, then the supply shocks to oil will have less time to trickle down to the next level. That would be welcome news, limiting price shocks to related sectors like transportation, food and consumer goods. Some fear that increases in these areas would increase inflation, leading to interest rates maintaining their current level rather than falling. With the next Fed Meeting just a week away, any news that could influence the direction of rates gathers much attention.
So what is our approach and perspective? Blue Summit diversified models including equities and debt are built to succeed in multiple macro environments. We have taken advantage of relatively high interest rates over the last 12-24 months and while we were preparing to unwind some of these positions throughout 2026, we may hold on longer.
In summary, while the current environment feels challenging, it's a reminder of why we build resilient, customized strategies from the start. Geopolitical events may dominate the news cycle, but history shows that patient, diversified investors tend to come out ahead. We will continue monitoring developments closely and provide our perspective when seas get choppy.
A final and separate note regarding taxes, your 1099 tax documents should be available. For many of you, we have already been in communication or provided these documents, but if you have any questions, please know we are here to help.
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