By Léon KIRCH, Partner & CIO at European Capital Partners
Political risk: a good example of not seeing the forest for the trees
The persistent political tensions in Europe and the rise of populism have recently dominated investors’ attention in the debate on the prospects of the European equities market. And yet the year 2016 has shown how difficult it is, notably for asset managers, to accurately predict not only the results of these political events but also their potential consequences on the financial markets.
In some ways, we could use an interesting analogy with the world of soccer and the role of the goalkeeper: at a penalty kick, the goalkeeper only has 2 (3) options: either to jump in one corner – left or right, or stay...