Readers know I write a column for Inside Business, which I submitted yesterday. Here is the opening:
The
sensitivity of stock markets to geopolitical events varies over time. Since the global financial crisis of 2008/9,
our market has been extremely sensitive to them. But, over the last quarter, we have seen more
Russian aggression against the Ukraine, practically assuring another recession
in both Russia and Europe. A virtually
unknown “JayVee” terrorist group has drawn us back into Iraq, and it even immortalized
its own barbarism by publishing videos of their war crimes. Of course, Asia is not immune to geopolitical
unrest, drawing closer to another “Tiananmen Square” in Hong Kong, which will unleash
even more trade sanctions. And, the
horror of Ebola suddenly popped up in America’s heartland, further rattling our
faith in government.
Yet,
the S&P 500 rose 0.6 percent, and the Dow rose 1.3 percent
during Q3. This decrease in sensitivity
to geopolitical events is simply breathtaking!
