The one thing that is certain when geopolitical events take hold is that uncertainty runs rife, and the one thing that investors and the markets don’t like is uncertainty. It’s during these times that market volatility picks up and emotional investors tend to head for the exit. But with so many factors at play in addition to the increase in geopolitical risk –high inflation, Central Banks removing accommodative policies, and the possibility of another Covid variant to emerge to name a few – investors should ask themselves, ‘Is now the time to give up on a well-diversified portfolio?’ What can we learn about the markets’ reaction to historical geopolitical tensions?
Click to read more . . . The Uncertainty of War