Financial markets can be forgiven for downplaying geopolitical risks. One loses count of the number of international crises and military flare-ups that have only had a fleeting impact on asset prices. Investors are poorly equipped to assess and price geopolitical threats, and they have long made light of them on the grounds that their economic and financial impact is negligible.This is one of the reasons the reaction to Russia’s invasion of Ukraine has been so dramatic and disruptive. Not only…
Source: Why Russia’s Ukraine invasion is a ‘Lehman moment’ for the global economy
