The last twelve months has seen a notable rise in
tensions in many parts of the world. Thailand is back under military rule, China
has become more aggressive with Japan and its other maritime neighbours, Russia
invaded Ukraine, and existing conflicts in Syria, Gaza and Iraq all
intensified.
While these conflicts have caused immense human and
political dislocation, financial markets have been rather sanguine. The Russian
stock market, for example, is down only around 5% from twelve months ago.
Markets are betting that economic relationships are going to trump political
ones, a point that caused some disruption in the Indian parliament this week. For
my part, I'm worried that markets are underpricing political risk in a desperate
search for some returns.
The Economist
Assinar:
Postar comentários (Atom)
Nenhum comentário:
Postar um comentário