Grasping the mettle of geopolitics in portfolios
A sustained increase in infrastructure and defence spending can have long-term implications
[SINGAPORE] Geopolitical crises and conflicts are springing up with greater frequency; do they warrant action on your portfolio? How should you approach geopolitical risk, if at all?
US-China tensions have simmered for years, but US President Donald Trump’s tariff salvos against the world have further exacerbated the strains – and not just vis-a-vis China.
Some issues may seem to have a straightforward impact on economies and markets. In a tariff-ridden world, for instance, higher-for-longer inflation seems par for the course. Some themes may jump out when war erupts such as higher oil prices and more defence spending.
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