Citi insights into political uncertainty

July 4

Political uncertainty has lasting effect

Even after the French Presidential election, political uncertainties and geopolitical risks remain high. History suggests that geopolitical events can have a longer lasting negative impact on financial markets if the event directly implicates the US in a significant manner and leads to a re-assessment of the role of the US in the world. Market volatility can also spike if oil prices rise rapidly or destabilising geopolitical events take place against a backdrop of already weak global growth and there are no offsetting policy actions.

Citi insights into political uncertainty Citi insights into political uncertainty

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Key Takeaways

  • While market volatility has stayed at historically low levels, there are geopolitical events that can trigger higher volatility.
  • Citi analysts continue to advocate that investors should have diversified portfolios to help them navigate different market situations.

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