What’s Donald Doing in Iran?

Stormy Seas Ahead?  

Recently, Fox & Hare Co-founder Glen Hare caught up with Hugh Lam, Investment Strategist at BetaShares, to discuss the escalating situation in Iran and the broader Middle East.

We know that when the news cycle gets “tumultuous,” it’s normal to feel uncertain about your financial future. So, we’ve put together this post and the recorded session below to bridge the gap between global headlines and your personal portfolio.

Read on to find out how to “turn down the noise” and stay in control of your journey toward financial freedom – no matter what’s going on out there. 

In Short:

⛽️ Conflict in the Strait of Hormuz directly impacts Australian petrol prices, which keeps inflation high and can trigger interest rate rises from the RBA.

💸 Yes, markets have seen dramatic pullbacks! But both Hugh & Glen recommend viewing this volatility as a “discount” on long-term investments rather than a reason to panic.

⛈️ Transitioning toward defensive sectors like consumer staples and maintaining a diligent, long-term strategy is key to weathering geopolitical storms.

Watch the video briefing or read the article below!

Your Next Step:
Read on or watch the webinar recording below to find out more about the situation. If you want to discuss your personal response and strategy in more detail, you can reach out to your team through the portal.

Why Does a War in Iran Affect my Hip Pocket?

Why is a conflict thousands of kilometres away impacting your Saturday morning errands? It comes down to a single “choke point” says Hugh.

“Roughly one-fifth of the world’s oil passes through the Strait of Hormuz, he notes. “And when this supply is threatened or disrupted, as the current war has and continues to do, we see an immediate shock to global markets.”

In short, things get “tumultuous” there, or in any other major energy production or shipping the impact hits home in two major ways:

You’ll feel it at the petrol pump first.

Then, because almost everything we buy is moved by trucks or ships, these higher energy prices will mean the cost of your groceries and lifestyle spending starts to creep up, too says Hugh.

This “energy shock” keeps inflation “higher for longer” and will be a key driver keeping the RBA hesitant to cut interest rates, which then flows on to meaning relief for your mortgage or rent is also likely further off than we’d like.

“Roughly one-fifth of the world’s oil passes through the Strait of Hormuz and when this supply is threatened or disrupted, as the current war has and continues to do, we see an immediate shock to global markets.” Says Betashares’ Hugh Lam.

It’s Not a “Crash” It’s a Fire Sale 🔥 

It’s one thing to feel the squeeze at the petrol pump, but seeing your portfolio take a hit at the same time can feel like a double blow.

When the ASX drops by 7% in a single month, the natural reaction is to feel “uncertain or scared” at the very least.

But for Fox & Hare members—most of whom are in the wealth accumulation phase of their lives—Glen and Hugh suggest a total perspective flip.

“Arguably, if you were investing in the Australian market today, you’re going to get a 7% discount to what you would have got just over a month ago,” says Glen.

While it’s tempting to hit the brakes when the news cycle gets loud, the biggest danger isn’t the market drop—it’s the “cost of doing nothing”. If you’re a regular investor (which nearly every Fox & Hare member is) staying diligent and sticking to your plan, is essentially buying your future freedom at a lower price point.

These pullbacks are actually a rare opportunity for those of us with time on our side. Glen points out that the current market situation is effectively a 7% discount compared to only 30 days ago.

Our advice to our member is simple, he says: turn down the news, stay the course, and let the long-term numbers do the heavy lifting – let others be distracted by the headlines.

Missed the whole session? Hit the image, plug in your headphones and get up to speed.

Where to Look When Markets Wobble 👀

While we’re busy “turning down the noise,” it’s still important to understand where the smart money moves during these cycles. As Hugh points out, “when global markets get shaky, investors tend to pivot toward defensive sectors, which obviously means we’re going to see them perform a little bit better.”

He highlights two key areas that tend to show more resilience during these “tumultuous times”:

🍚 Consumer Staples:
Think of the non-negotiables. These are the things people have to buy regardless of what’s happening in the news—like groceries and household essentials.

⚡️ Energy Exposure:
Because this conflict is centered in a major oil-producing region, specific energy sectors can act as a natural hedge, often performing well even when the broader market is down.

Of course, the goal isn’t to try and “outsmart” the market with a lucky guess says Glen. It’s about ensuring your portfolio has the right mix of “anchors” to stay steady while you wait for the long-term numbers to do their thing.

High-achieving, experienced, and always in your corner. Your Fox & Hare advice team are always working to ensure you are in the best possible possible position – please reach out via the PFP with any questions!

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you.