Geopolitical crisis impact 'not long term'

After initial panic, markets tend to be largely unaffected; investors better off buying on dips or staying put


GEOPOLITICAL crises tend to spark some degree of panic in financial markets. But history suggests their impact is likely to be short-lived, and they fail to substantially alter markets' underlying trends.

In a geopolitical crisis, investors would generally fare better by buying on dips or doing nothing, says Colin Moore, global chief investment officer at Columbia Management and Threadneedle Investments.

The world has seen a number of geopolitical crises since the 2008 global financial crisis. These include the Arab Spring, civil war in Syria, tensions between Russia and the Ukraine, and extremism and the emergence of the Islamic State group.

Mr Moore and Lim Say Boon, chief investment...


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