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Investors should not be fooled by geopolitical flashpoints

It can be helpful to think through the ambitions or intent behind events that have been most central in investors’ considerations

Current geopolitical events are unlikely to trigger shockwaves as they did in the past
Current geopolitical events are unlikely to trigger shockwaves as they did in the past Photo: Getty Images

It is understandable that investors are wondering what effect current geopolitical issues will have on the global economic cycle and a market cycle across most equity and bond indices.

Could enhanced political tensions with Russia or fear of a global trade war explain the recent period of market volatility, for example?

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