A chart is often waved in front of folks trying to make the finance crowd pay more attention to geopolitics. It shows how markets responded to major events, like 9/11 or the start of the US-China trade war (under President Trump).
There is a big spike, as investors panicked, followed by an almost immediate return to normal trading routine, which visually looks like a flatline. It is often viewed as “proof” that geopolitics has little effect on the investment world. And also that investments have some level of immunity to the world stage.
Until recently, this was true.
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