By Tim Russell, President & Wealth Manager, and Stephen Rohrer, Wealth Manager at Life Financial Group.
Originally shared on the Life in the Markets podcast — 06/20/2025

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Let’s take a look at a few things currently driving the markets. Despite ongoing tensions between Israel and Iran, the market is only slightly down—and not as bad as many feared.

Israel-Iran Conflict

It’s going to be a fascinating couple of weeks. Trump and his cabinet appear divided on how to proceed with the conflict between Israel and Iran, and even Trump’s base is pushing back on the idea of entering another war.

That said, historically, markets have sometimes performed well even during wartime. For example, when the U.S. went into Iraq, the market was up significantly that year—around 20% depending on the index.

So even if we get involved with Iran, it doesn’t necessarily mean negative outcomes for the markets. It might not even mean boots on the ground. That’s encouraging.

Don’t Let Headlines Drive Your Decisions

Bottom line: Don’t let headlines determine your investment outlook. The markets often move independently of what you see in the news.

Think about it: Will McDonald’s become more or less profitable if we enter a conflict? Likely not. They’ll still be selling Big Macs. The same goes for Starbucks and Amazon. Business fundamentals—not headlines—drive long-term market performance.

Of course, news can affect the markets in the short term, but these impacts are often minor or short-lived. The important thing is to focus on the underlying strength of the businesses you’re invested in, not the drama on the evening news.

Fed Holds Steady on Interest Rates

Another key development: The Federal Reserve announced this week that it will hold interest rates steady. The federal funds rate remains at around 4.25% to 4.5%.

Many were hoping for a rate cut, but it doesn’t seem likely until October at the earliest. As interest rates decrease, that’s typically good news for retirees invested in bonds—though the reasons behind rate changes still matter. A drop due to economic weakness isn’t ideal.

Tax Bill on the Horizon

The Senate is currently reviewing the tax bill and considering modifications. While we’re not ready for a deep dive yet, we’ll provide detailed insights once the bill becomes law.

President Trump initially gave a July 4 deadline to finalize the tax cut, but it’s unlikely Congress will meet that goal. With summer recess around the corner, the process may not resume until late August.

We’ll keep a close eye on developments and explain what these changes might mean for you—as an investor, retiree, or working individual—in a future episode.

What to Expect Next Week

Looking ahead, we’ll continue monitoring news around geopolitical tensions and the economy. Barring any major changes, we don’t expect significant market movement next week.

Our next update will come during the final week of June, leading into the July 4 holiday.

Final Thought: Stewardship and Faithfulness

I want to close with a powerful verse—1 Corinthians 4:2:

“Moreover, it is required of stewards that they be found faithful.”

It doesn’t matter what happens in Washington or overseas. You’re not accountable before God for global politics. You’re responsible for your own faithfulness—how you steward what God has entrusted to you.

That includes your family, your marriage, your finances, and your calling. Be faithful where God has planted you. Everything else will work itself out in time.

Thank you for joining us on today’s Life in the Markets. Be sure to grab a copy of The Good Steward: Biblical Principles of Wealth Management, take a look, and share it with others—we’d greatly appreciate it.

Thank you so much. Take care, and until next week, God bless.

The topics discussed in this blog are for general information only and are not intended to provide specific investment advice or recommendations. Investing and investment strategies involve risk, including the potential loss of principal. Past performance is not a guarantee of future results. Securities and advisory services are offered through Genios Wealth Management, member FINRA and SIPC.