North American markets are set to open lower after a broad selloff pushed the S&P 500 to a new low for the year and sent the Nasdaq into correction territory.
BNN Bloomberg spoke with Jason Betz, private wealth advisor at Ameriprise Financial, who said the pullback reflects uncertainty tied to geopolitical tensions rather than a breakdown in economic fundamentals.
Key Takeaways
- Recent declines reflect geopolitical uncertainty, with the S&P 500 hitting a new yearly low and Nasdaq entering correction territory.
- Markets tend to move past conflicts over time as economic impacts prove less severe than initially feared.
- Investors are advised to stay diversified and avoid trying to time markets based on geopolitical developments.
- Rising oil and gas prices may have a limited impact on overall consumer spending and economic growth.
- Concentration in big tech and AI poses risks, with competition, pricing pressure and rising costs potentially weighing on returns.
Read the full transcript below:
LINDSAY: North American markets are poised to open lower after Thursday’s selloff. The S&P 500 hit a new low for the year and the Nasdaq moved into correction territory. Let’s get some perspective. Joining me now is Jason Betz, private wealth advisor at Ameriprise Financial. It’s great to have you with us. Good morning.
JASON: Good morning. My pleasure.
LINDSAY: What are your thoughts on what we’ve been seeing in the markets this week and what you’re seeing today ahead of the open?
JASON: Generally speaking, it’s not surprising. We have a geopolitical shock-type event with Iran, and what’s happened with the Strait and with oil and gas prices in the U.S. Markets are probably handling it a little better than I would have expected. I would have thought we would be in correction territory by now with the S&P 500.
We see this time and time again with any major geopolitical issue. This is a big deal, and markets don’t like these types of events, especially the uncertainty that comes with them. We find ourselves in the middle of a lot of uncertainty right now.
I think the market is also showing, at least so far in pre-market trading, that it’s grown a bit callous to headlines such as positive comments or delays on policy decisions that in the past would have led to a rally the following day. We’re not seeing that play out so far.
LINDSAY: What’s interesting in your notes is you say at some point the market is going to move on from Iran, even before the conflict ends. Why do you think that, given how closely this is tied to oil prices?
JASON: Historically, that’s been the case in conflicts like this. There is a lot of concern about energy and gas prices. But if you look more closely, even a 50-cent to $1 increase per gallon sustained over a year might only amount to roughly $500 to $800 in additional consumer spending.
That’s not ideal, but it’s not enough to significantly move the economic needle. Over time, strategists and economists digest that data, and as the conflict continues, it becomes clear the economic impact is not as severe as feared.
Markets tend to move on, as we saw with Ukraine and Russia, and earlier conflicts in the Middle East. It’s a reminder to stay diversified and stick to long-term principles. If investors do that, they can afford to be patient.
LINDSAY: Is that what you’re telling clients right now — to stay diversified and be patient?
JASON: Absolutely. I’m also telling investors what not to do, which is trying to time the market based on developments around Iran, oil or gas prices. You might get it right once, but you’ll likely be wrong more often than not.
As long as you’re properly diversified, you should be in a good position. Markets have a long history of weathering major conflicts and shocks that, in hindsight, often seem worse at the time than they ultimately are.
LINDSAY: We’ve been seeing a selloff in chip stocks tied to new AI developments. Could that be a disruptor for the sector?
JASON: The short answer is yes. Investors have piled into AI and big technology with the expectation it will continue delivering strong returns indefinitely. Historically, though, investors tend to overbuy the next big theme without fully considering competition, pricing pressures and rising costs.
There is certainly opportunity in AI, and it should be part of a portfolio. But I think many investors are overweight the space. The S&P 500 itself is heavily concentrated in big technology and is less diversified than many believe.
There are also cost pressures. These companies are making large capital expenditures on technology that can become obsolete quickly, which means ongoing reinvestment and potentially higher operating costs than expected.
The space could continue to grow strongly, but there are clear risks around competition, pricing and expenses that investors should consider.
LINDSAY: We’ll leave it there. That’s Jason Betz, private wealth advisor at Ameriprise Financial. Thanks for your time this morning.
JASON: My pleasure.
---
This BNN Bloomberg summary and transcript of the March 27, 2026 interview with Jason Betz are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
