With the new year finally arriving, investors are already getting a taste of what may be the underlying theme for all of 2019. And that’s the fact that geopolitical risk will drive volatility over the year. After a very smooth 2017, last year was anything but. Various events across the globe – from the trade war with China and BREXIT woes to escalating tensions in the Middle East finally took their toll on market participants. Volatility came back with a vengeance.
Unfortunately, those big market swings could be sticking around for the rest of the new year as well.
Given potentially slowing growth across the world, analysts now predict that the market/traders can no longer afford to ignore various geopolitical events when it comes to their investments. Everything can and will be viewed as a tipping point. For those of us focusing on the long term, the ride could be bumpy indeed. However, there are ways to smooth out that journey over the next four quarters.
