One of the concerns for investors is how markets keep powering higher despite all of the geopolitical turmoil: The grinding Syrian civil war that has spilled into Iraq, the clash between Israel and Gaza, the Crimea annexation and now the confrontation between Russia and Ukraine.
That thinking gets the issue precisely backward. The proper question to ask is, “Why should investors care about geopolitics?”
That may seem counterintuitive, but if you delve into history, you will discover that markets have more or less found the normal turmoil of geopolitics to be irrelevant. The reasons for this are varied, but consider these factors:
8 Responses to “Why should investors care about geopolitics?”
Leave a Reply
You must be logged in to post a comment.