Geopolitics drove dispersion

March 2026

March was defined by dispersion: markets did not move as one, and regional outcomes depended on energy sensitivity, currency dynamics, and how investors priced uncertainty. With the Strait of Hormuz under heavy disruption—a route that has historically carried roughly one-fifth of global crude oil flows—investors quickly shifted focus from “risk-off sentiment” to the real-economy impacts: energy costs, shipping bottlenecks, and policy trade-offs. Canada held up relatively better than many peers, supported by commodity exposure, while parts of global equities struggled as energy vulnerability was exposed and volatility rose.

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