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By Paras ANAND, CIO Equities, Europe, Fidelity International
As geopolitics once again takes centre stage, it is reasonable for investors to question the impact on the (rather mature) global economic cycle and on an (even more extended) market cycle across most equity and bond indices. But is where the risk is coming from?
On one level, geopolitics helps to explain the recent period of market volatility but this is arguably misleading as it demonstrates, in my view, a misunderstanding of what has driven returns over the past few years. If you accept that excessively loose monetary policy has largely supported asset prices across the board, then your biggest fear should not be an economic slowdown driven in part by rising geopolitical tensions or a tit...
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