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Equity Markets See Iran War as Short-Term Phenomenon, Morgan Stanley’s Shalett Says

Bloomberg Markets
Wednesday, March 11, 2026 at 12:56 PM
~4 min read
InflationEquities

Original Report

Lisa Shalett, CIO at Morgan Stanley Wealth Management, discusses how markets are viewing the Iran war and why it may take quarterly earnings to get investors to properly price the related risks....

Lisa Shalett, CIO at Morgan Stanley Wealth Management, discusses how markets are viewing the Iran war and why it may take quarterly earnings to get investors to properly price the related risks. (Source: Bloomberg)

Glass House Analysis

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

Corporate decisions reverberate through local communities—a merger might mean headquarters relocating, a restructuring could eliminate jobs, and strategic shifts affect suppliers and service providers in countless towns. Behind quarterly earnings numbers are real employment decisions, investment choices, and community impacts that shape the economic landscape of regions across the country.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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