Investment Weekly
Chart of the week – Stocks and geopolitical shocks
The recent escalation of events in the Middle East puts geopolitical risk back on the radar for global investors. Typically, geopolitical shocks – and a higher geopolitical risk premium – mean spikes in market volatility, higher correlations among risky assets, and risk-off moves favouring safe-havens. But history also tells us that most of these events have short-lived effects on markets.
More from this week:
Market Spotlight
- EM high yielders surging ahead
Lens on…
- Unloved defensives offer cheap protection
- Spillover effects of US strength
- Building infrastructure in Asia