Jun. 14, 2025 8:15 PM ETS&P 500 Index (SPX), SP500SPX, SP500, BAPR, BAUG, BJUL, BJUN, BMAR, BMAY, BOCT, BUFF, CATH, CSTNL, EFIV, EPS, FTA, HIBL, HIBS, IVE, IVV, IVW, KNG, NOBL, PAPR, PAUG, PBP, PJAN, PJUN, QDIV, QVML, RPG, RPV, RSP, RWL, RYARX, RSPT, SDS, SH, SNPE, SPDN, SPDV, SPGP, SPHB, SPHD, SPHQ, SPLG, SPLV, SPMO, SPMV, SPUS, SPUU, SPVM, SPVU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SPYD, SPYG, SPYV, SPYX, SSO, SSPY, UAUG, UJAN, UMAR, UMAY, UOCT, UPRO, USMC, VFINX, VOO, VOOG, VOOV, VXZ, XLG, XRLV, XVV, XYLD, XYLG, SIVR, BLOK, ARKF, XES, ARKW, XBI, USO, OIH, SMH, COPX, BITO, MSOS, VCR, CGW, BIZD, DXJ, GLD, ONEY, KIE, IDRV, EYE, CMP, NRG, HTZ, MP, HWM, PLMR, X, CELHErik Conley11.49K Followers(5min)SummaryMarket complacency remains high despite Middle East tensions, suggesting potential for further drawdowns as investors underestimate risks.May's market rally was strong, but June faces challenges amid earnings uncertainty, tariff concerns, and shifting money flows.Last week saw a rotation: investors favored volatility, commodities, energy, defensive, value, and miners, while selling tech, growth, and cyclicals.Geopolitical events may cause short-term market weakness, but historically have limited long-term impact on equity direction.SlavkoSereda/iStock via Getty ImagesThe equity market was doing o.k. last week until the escalation of tensions in the Middle East hit the tape. Friday's loss was mild in comparison to what I expected. This reinforces my view that there is too muchThis article was written byErik Conley11.49K FollowersTrader, analyst & portfolio manager, from 1975 - 2001. Former head of equity trading at Northern Trust Co. in Chicago. Now a private investor, founder of a nonprofit investor advocacy firm, and private investing coach. It gives me great satisfaction to teach retail investors the same skills and strategies that I used with my high net worth clients as a private wealth manager. It may be a cliche, but giving something back to the community is more rewarding to me than helping very rich people get even richer.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Middle East escalation turned a decent week into a flight to safety week Energy prices spiked higher as investors fretted about supply disruptions Volatility spiked higher on the Middle East newsSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You