By YVONNE TAN
Geopolitical risks — have increased exponentially. Throw in global changes such as the transition from fossil fuels to renewable energy, the growing importance of ESG and the increasing number of alternatives, investing has indeed become much more challenging.
It is vital to understand that geopolitical events generally do not have a long-lasting impact on investment portfolios.
While disruptions can create short-term volatility, economic growth, innovation and a diversified portfolio, can help investors achieve their goals over time.
JPM believes that four areas of thematic plays — national defence, energy provision, supply chains and cybersecurity — will continue to be in focus.
Generally, stocks that fall in times of conflict are those related to tourism and travel.
History has shown that in the midst of most conflicts, stocks do tend to falter, but after a while, markets have been known to shrug off these concerns, choosing to focus more on the actual growth of economies.
Source: The Star
https://www.thestar.com.my/business/bus ... ts-riskier
