The week ending Friday, March 20, 2026, represented a meaningful shift in market dynamics as geopolitical tensions—specifically involving Iran—introduced a new layer of uncertainty that rippled across global financial markets. What initially appeared to be a standard pullback quickly evolved into a broader repricing of risk, driven by rising oil prices, inflation concerns, and a reassessment of Federal Reserve policy expectations.

During the week, all three major indices moved lower, reflecting a clear “risk-off” tone across markets:

While these headline numbers are important, they don’t fully capture what really happened beneath the surface. This was not simply a market pullback—it was a sector rotation event, where capital moved decisively out of growth and into energy, defense, and defensive assets.

The dominant force driving markets during this period was the escalation of tensions involving Iran. This is not a minor geopolitical issue—it sits at the heart of global energy infrastructure.

Iran’s proximity to the Strait of Hormuz, a narrow waterway through which a significant percentage of the world’s oil supply passes, makes any disruption—or even the threat of disruption—extremely impactful.

Markets began rapidly pricing in several risks:

This is where many investors underestimate the situation: oil is not just another commodity. It is deeply embedded in every layer of the global economy. When oil prices rise, the effects cascade into transportation, manufacturing, logistics, and ultimately consumer prices.

The most immediate and visible reaction to the Iran situation was a sharp move higher in oil prices. Markets quickly priced in a geopolitical risk premium, pushing crude higher and signaling potential supply concerns.

This matters because oil acts as a transmission mechanism across the economy:

This chain reaction is critical. It explains why equity markets sold off even though economic fundamentals had not drastically changed.

Looking forward, oil will likely remain the key variable driving market direction. Over the next two months, there are three realistic scenarios:

1. Escalation Scenario
If tensions increase or supply routes are disrupted, oil could move significantly higher—potentially rising $10 to $20 per barrel or more. This would intensify inflation pressures and likely lead to further equity market volatility.

2. Contained Conflict Scenario
If the conflict remains limited in scope without direct supply disruption, oil may stay elevated but stabilize within a range. This would still create pressure but reduce the likelihood of extreme market moves.

3. De-escalation Scenario
If diplomatic progress or stabilization occurs, oil could fall quickly as the geopolitical premium unwinds. This would likely trigger a relief rally in equities.

At this moment, the market appears to be pricing in a moderate escalation scenario, which explains both the rise in energy stocks and the weakness in growth-oriented sectors.

One of the most important developments during this period has been the clear outperformance of energy stocks.

Companies such as Chevron (CVX), Exxon Mobil (XOM), and Occidental Petroleum (OXY) have all benefited directly from rising oil prices. These businesses see immediate margin expansion when crude increases, making them natural beneficiaries of geopolitical instability.

A key real-world example from our own portfolio:
Trip owns Chevron (CVX) and is currently up +21.83% on the position since initiating it. This is not accidental—it reflects strategic positioning in a sector that benefits directly from macro conditions.

Energy is doing exactly what it historically does in times like this:
👉 Acting as both a return driver and a hedge

In addition to energy, defense stocks have shown consistent strength.

Companies such as:

have all benefited from expectations of increased global military spending.

This is a pattern that repeats across history. When geopolitical tensions rise, governments increase defense budgets, and these companies become long-term beneficiaries.

Additionally, modern warfare is increasingly data-driven, which brings companies like Palantir (PLTR) into focus. Palantir’s role in intelligence and data analytics positions it uniquely at the intersection of technology and defense.

Beyond traditional sectors, several other areas are showing strength:

These sectors may not be moving as aggressively as oil, but they are clearly part of the broader rotation.

On the other side of the equation, several sectors are under pressure.

High-growth technology stocks are seeing selling as investors reduce risk exposure. These companies tend to have higher valuations, making them more sensitive to rising interest rates and inflation.

Names like Tesla (TSLA) and various semiconductor companies have experienced pullbacks as capital rotates elsewhere.

Travel and leisure stocks are also facing challenges due to rising fuel costs and potential declines in consumer spending.

Small-cap stocks, in general, tend to underperform in environments like this because they are more sensitive to economic uncertainty and tighter financial conditions.

This is where the situation becomes more complex.

Higher oil prices contribute directly to inflation, and inflation remains one of the Federal Reserve’s primary concerns.

If inflation remains elevated:

This creates a difficult environment for markets in the short term, even if long-term fundamentals remain strong.

Markets are driven by emotion in the short term and fundamentals in the long term.

Geopolitical events tend to trigger fear-driven selling, often leading to sharp but temporary declines. History shows that once uncertainty begins to clear, markets tend to recover—often quickly.

The challenge for investors is maintaining discipline during these periods.

Selling into fear is rarely a successful long-term strategy. Instead, these environments often create opportunities to accumulate high-quality assets at more attractive prices.

We are not attempting to predict short-term market movements.

Instead, we are focused on positioning:

This approach balances risk while maintaining exposure to long-term trends.

The current market environment is uncertain—but uncertainty is not permanent.

The Iran conflict has introduced volatility, but it has also created opportunity. Energy and defense are leading, while growth sectors are resetting.

At some point, clarity will return—and when it does, markets historically rebound.

The key is not reacting emotionally, but staying disciplined and focused on long-term value.

Microsoft remains one of the most compelling long-term investment opportunities in the market today, and despite its massive size and historical performance, there is a strong case to be made that the stock is still undervalued relative to its future earnings potential. In an environment defined by geopolitical uncertainty, inflation pressures, and shifting market leadership, Microsoft stands out as a company that offers both stability and growth—an extremely rare combination.

At its core, Microsoft has successfully transformed itself from a traditional software company into a diversified technology powerhouse that sits at the center of several of the most important trends shaping the global economy. These include cloud computing, artificial intelligence, enterprise software, and digital infrastructure. Unlike many companies that rely on a single growth engine, Microsoft benefits from multiple high-margin business segments that reinforce one another.

The most important of these growth drivers is Microsoft Azure, the company’s cloud computing platform. Cloud adoption is still in relatively early stages globally, with businesses continuing to shift away from on-premise infrastructure toward scalable, cloud-based solutions. Microsoft has positioned Azure as one of the top two cloud platforms in the world, competing directly with Amazon Web Services. As enterprises continue migrating their operations to the cloud, Azure provides Microsoft with a long runway for sustained revenue growth. This is not a short-term trend—it is a multi-decade transformation of how businesses operate.

Layered on top of this cloud infrastructure is Microsoft’s aggressive push into artificial intelligence. Through its partnership with OpenAI, Microsoft has placed itself at the forefront of the AI revolution. What makes Microsoft unique is that it is not treating AI as a standalone product. Instead, it is embedding AI capabilities across its entire ecosystem. Tools like Microsoft 365, Teams, and Azure are becoming AI-powered platforms, allowing businesses to automate processes, improve productivity, and extract insights from data more efficiently.

This integration creates a powerful competitive advantage. Companies that already rely on Microsoft products are far more likely to adopt its AI tools because they are seamlessly integrated into workflows they already understand. This reduces friction and accelerates adoption. Over time, this could significantly increase Microsoft’s pricing power and expand margins.

Another critical strength of Microsoft is its business model. A large portion of its revenue is subscription-based, driven by products like Office 365 and enterprise cloud services. This creates predictable, recurring revenue streams, which provide stability even during periods of economic uncertainty. In a volatile market environment like the one we are currently experiencing, this type of consistency is extremely valuable.

Financially, Microsoft is in an elite position. The company generates enormous free cash flow, maintains a strong balance sheet, and has relatively low debt compared to its size. This gives it the flexibility to invest heavily in growth initiatives while also returning capital to shareholders through dividends and share buybacks. Few companies have this level of financial strength combined with growth potential.

So why is Microsoft still undervalued?

The answer lies in perception. Many investors view Microsoft as a “mature” company, assuming that most of its growth is already behind it. However, this perspective fails to account for the massive opportunities still ahead. Artificial intelligence alone has the potential to significantly increase Microsoft’s revenue and earnings over the next decade. When combined with continued cloud expansion and enterprise adoption, the company’s long-term growth trajectory remains strong.

Additionally, Microsoft’s scale can sometimes mask its growth. Because it is already such a large company, even substantial increases in revenue may appear modest on a percentage basis. However, in absolute terms, these gains are enormous.

From an investment standpoint, Microsoft offers something that is increasingly rare: the ability to participate in high-growth technological trends without taking on excessive risk. It is not a speculative company. It is deeply embedded in the global economy, providing critical infrastructure that businesses rely on every day.

In today’s uncertain environment—where geopolitical tensions, rising oil prices, and inflation concerns are creating volatility—Microsoft stands out as a company that can weather short-term challenges while continuing to grow over the long term. Its combination of innovation, financial strength, and market leadership makes it a foundational holding for any long-term investor.

Ultimately, Microsoft is not just keeping up with the future—it is helping build it. And that is why we continue to view it as one of the best investment opportunities in the market today

Chris’s Morgan Stanley portfolio continues to serve as the foundation of the family’s investing strategy, delivering exceptional performance and reflecting a disciplined focus on long-term, high-quality companies aligned with major global trends.

Alphabet (GOOG) closed at $298.79 and is up +73.98%. The stock carries an average analyst rating of Strong Buy, and Chris also rates it a Strong Buy. Chris owns Alphabet because of its dominance in digital advertising and its rapidly expanding artificial intelligence capabilities, which remain under-monetized relative to their long-term potential. He also believes Google Cloud will continue gaining share and becoming a major contributor to revenue growth.

Amazon (AMZN) closed at $205.37 and is down -1.27%. Analysts rate the stock a Strong Buy, and Chris maintains a Strong Buy rating. Chris owns Amazon for its leadership in both e-commerce and cloud computing through AWS, which remains one of the most important infrastructure platforms globally. He believes margin expansion and operational efficiencies will unlock significant long-term value.

Apple (AAPL) closed at $247.99 and is up +65.40%. The stock holds an average analyst rating of Buy, and Chris agrees with a Buy rating. Chris owns Apple because of its unmatched ecosystem and pricing power, which continue to generate enormous free cash flow. He also sees long-term upside from services growth and continued product innovation.

Costco (COST) closed at $972.33 and is up +106.43%. Analysts rate the stock a Buy, and Chris also rates it a Buy. Chris owns Costco for its loyal customer base and ability to perform in both strong and weak economic environments. He values its consistent growth, disciplined management, and pricing advantage.

Deere & Company (DE) closed at $559.73 and is up +59.66%. The average analyst rating is Buy, and Chris rates it a Buy. Chris owns Deere due to its leadership in agricultural equipment and its integration of precision technology. He believes global food demand and automation will drive long-term growth.

GE HealthCare (GEHC) closed at $69.65 and is down -15.40%. Analysts rate the stock a Buy, and Chris maintains a Buy rating. Chris owns GE HealthCare for its strong position in medical imaging and diagnostics, which are essential to global healthcare systems. He views the recent pullback as a temporary setback rather than a long-term issue.

GE Vernova (GEV) closed at $851.07 and is up an extraordinary +736.46%. The stock carries an average analyst rating of Buy, while Chris rates it a Strong Buy. Chris owns GE Vernova because of its exposure to the global energy transition and electrification demand. He believes the need for reliable energy infrastructure will continue to accelerate worldwide.

General Electric (GE) closed at $286.79 and is up +190.86%. Analysts rate the stock a Buy, and Chris also rates it a Buy. Chris owns GE for its transformation into a more focused aerospace and industrial company with strong recurring revenue. He believes the restructuring has unlocked significant long-term value.

Kroger (KR) closed at $73.20 and is up +49.16%. The average analyst rating is Hold, while Chris rates it a Buy. Chris owns Kroger as a defensive position that performs well in uncertain economic environments. He also sees margin expansion potential through private label growth and operational efficiency.

Meta Platforms (META) closed at $593.66 and is up +2.40%. Analysts rate the stock a Strong Buy, and Chris agrees with a Strong Buy rating. Chris owns Meta because of its dominance in digital advertising and improved cost discipline, which has significantly increased profitability. He also believes AI-driven engagement will drive future growth.

Microsoft (MSFT) closed at $381.87 and is up an incredible +750.85%. The stock carries an average analyst rating of Strong Buy, and Chris rates it a Strong Buy. Chris owns Microsoft because of its leadership in cloud computing and artificial intelligence integration across its ecosystem. He believes Microsoft remains one of the most important companies in the global economy with continued upside.

Procter & Gamble (PG) closed at $144.28 and is up +77.09%. Analysts rate the stock a Buy, and Chris also rates it a Buy. Chris owns Procter & Gamble for its defensive characteristics and consistent cash flow generation. He values its ability to perform across economic cycles while paying reliable dividends.

Chris’s Fidelity Trust account adds diversification through financials, energy infrastructure, and dividend-producing blue-chip companies.

Amazon (AMZN) closed at $205.37 and is up +80.77%. Analysts rate the stock a Strong Buy, and Chris also rates it a Strong Buy. Chris owns Amazon for its continued dominance in cloud computing and global logistics infrastructure. He believes the company’s scale and efficiency will drive long-term profitability.

American Express (AXP) closed at $295.50 and is up +77.29%. The stock carries an average analyst rating of Buy, and Chris rates it a Buy. Chris owns American Express because of its premium customer base and strong spending trends. He also values its pricing power and resilience during economic cycles.

Kinder Morgan (KMI) closed at $32.84 and is up +120.20%. Analysts rate the stock a Buy, and Chris also rates it a Buy. Chris owns Kinder Morgan for its stable, fee-based pipeline business, which generates consistent income regardless of short-term oil price fluctuations. He also values its strong dividend and strategic importance in U.S. energy infrastructure.

Verizon (VZ) closed at $49.98 and is down -0.92%. The average analyst rating is Hold, while Chris rates it a Buy. Chris owns Verizon for its reliable dividend and defensive characteristics in volatile markets. He believes the stock is undervalued relative to its consistent cash flow.

Exxon Mobil (XOM) closed at $159.67 and is up +90.29%. Analysts rate the stock a Buy, and Chris rates it a Strong Buy. Chris owns Exxon as a direct play on global energy demand, particularly in light of geopolitical tensions involving Iran. He believes rising oil prices and disciplined capital allocation will continue to drive strong returns.

Chris’s Roth IRA reflects a concentrated, high-conviction approach focused on innovation and long-term disruption.

Tesla (TSLA) closed at $367.96 and is up +15.70%. Analysts rate the stock a Hold, while Chris rates it a Buy. Chris owns Tesla because he believes it extends far beyond electric vehicles into artificial intelligence, robotics, and energy storage. He sees long-term upside driven by global adoption and technological leadership.

This account is highly concentrated in two of the most influential companies in the world.

Apple (AAPL) closed at $247.99 and is up +128.60%. Analysts rate the stock a Buy, and Chris also rates it a Buy. Chris owns Apple for its ecosystem strength, brand loyalty, and recurring revenue from services. He believes it remains a long-term compounder.

NVIDIA (NVDA) closed at $172.70 and is up +74.92%. The stock carries an average analyst rating of Strong Buy, and Chris rates it a Strong Buy. Chris owns NVIDIA because it is the clear leader in AI chips and computing infrastructure. He believes demand for AI processing power will continue to accelerate.

This account highlights a targeted bet on artificial intelligence and defense convergence.

Palantir (PLTR) closed at $150.68 and is up +4.73%. Analysts rate the stock a Buy, while Chris rates it a Strong Buy. Chris owns Palantir because of its deep integration with government and defense systems, making it highly relevant in today’s geopolitical environment. He also believes its commercial AI platform has significant long-term upside.

Trip’s portfolio reflects a more aggressive growth strategy with exposure to energy, AI, space, and digital assets.

Alibaba (BABA) closed at $122.41 and is up +57.95%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns Alibaba as a value opportunity in international markets, believing it is undervalued relative to its growth potential. He also sees upside from improving sentiment toward Chinese equities.

MicroStrategy (MSTR) closed at $135.66 and is down -21.86%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns MicroStrategy for its leveraged exposure to Bitcoin, viewing it as a long-term play on digital assets. He understands the volatility but believes in long-term upside.

Coeur Mining (CDE) closed at $17.67 and is down -31.76%. Analysts rate it a Hold, while Trip rates it a Buy. Trip owns Coeur Mining as a speculative play on precious metals, particularly silver. He believes geopolitical instability could support higher commodity prices.

NextEra Energy (NEE) closed at $89.50 and is up +2.03%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns NextEra for its leadership in renewable energy. He believes the clean energy transition will drive long-term growth.

GE Vernova (GEV) closed at $851.07 and is up +749%. Analysts rate it a Buy, and Trip rates it a Strong Buy. Trip owns GE Vernova for its exposure to global electrification and energy demand. This has been one of his most successful investments.

Rocket Lab (RKLB) closed at $67.23 and is down -22.47%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns Rocket Lab as a long-term play on the space economy. He believes the industry is still in its early stages.

L3Harris Technologies (LHX) closed at $352.85 and is down -1.22%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns L3Harris as a defense play tied to rising geopolitical tensions. He believes military spending will continue increasing.

Apple (AAPL) closed at $247.99 and is up +113.65%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns Apple as a core position due to its ecosystem and cash flow stability.

AST SpaceMobile (ASTS) closed at $89.93 and is down -20.78%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns AST SpaceMobile for its disruptive satellite-based communication model. He sees significant upside despite volatility.

NVIDIA (NVDA) closed at $172.70 and is up +47.44%. Analysts rate it a Strong Buy, and Trip rates it a Strong Buy. Trip owns NVIDIA because of its leadership in AI infrastructure.

IREN (IREN) closed at $41.29 and is down -31.18%. Analysts rate it a Hold, while Trip rates it a Buy. Trip owns IREN as a speculative play on Bitcoin mining and digital infrastructure.

Adobe (ADBE) closed at $248.15 and is down -7.20%. Analysts rate it a Buy, and Trip rates it a Buy. Trip owns Adobe for its leadership in creative software and AI integration.

Chevron (CVX) closed at $201.73 and is up +21.83%. Analysts rate it a Buy, and Trip rates it a Strong Buy. Trip owns Chevron as a direct play on rising oil prices tied to geopolitical instability. He believes energy demand will continue driving higher cash flows.

Bitmine Immersion Technologies (BMNR) closed at $20.94 and is down -19.46%. Analysts rate it a Hold, while Trip rates it a Buy. Trip owns BMNR as a speculative digital infrastructure play.

Frankie’s portfolio is heavily focused on high-growth technology and innovation.

Navitas Semiconductor (NVTS) closed at $8.75 and is up +17.61%. Analysts rate it a Buy, and Frankie rates it a Buy. Frankie owns Navitas for its role in next-generation power semiconductors.

GE Vernova (GEV) closed at $851.07 and is up +749%. Analysts rate it a Buy, and Frankie rates it a Strong Buy. Frankie owns it for global energy infrastructure growth.

Nebius (NBIS) closed at $117.62 and is up +38.75%. Analysts rate it a Buy, and Frankie rates it a Buy. Frankie owns it for AI and cloud growth.

Microsoft (MSFT) closed at $381.87 and is up +241.5%. Analysts rate it a Strong Buy, and Frankie rates it a Strong Buy. Frankie owns it for AI and cloud dominance.

Tesla (TSLA) closed at $367.96 and is up +23.73%. Analysts rate it a Hold, while Frankie rates it a Buy. Frankie owns Tesla for long-term AI and EV growth.

Palantir (PLTR) closed at $150.68 and is up +4.73%. Analysts rate it a Buy, and Frankie rates it a Strong Buy. Frankie owns it for AI and defense integration.

Aurora (AUR) closed at $4.13 and is up +5.90%. Analysts rate it a Buy, and Frankie rates it a Buy. Frankie owns Aurora for autonomous driving potential.

Meta (META) closed at $593.66 and is up +2.73%. Analysts rate it a Strong Buy, and Frankie rates it a Strong Buy. Frankie owns Meta for AI-driven growth.

Markets will always fluctuate, and uncertainty will always exist. What matters most is how investors respond.

This family approach—combining experience, discipline, and forward-thinking strategy—demonstrates that long-term wealth is built through consistency, not reaction.

The focus remains the same:
Own great companies, stay patient, and let compounding work

This newsletter is for informational and educational purposes only and should not be considered financial, investment, or legal advice. All investments carry risk, including the potential loss of principal. Past performance is not indicative of future results. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.