Geopolitics is now a critical macro and market variable

• Geopolitics shapes the backdrop for policy and business decision-making. It influences fiscal and industrial policy, public spending, inflation and interest rates. It shapes choices companies make, thereby affecting trade routes and supply chains too.
• As recent events in the Middle East have shown, geopolitical developments can cause regime shifts, altering the market’s expectations on growth, inflation, liquidity, and policy responses.
• In short, geopolitics can change the macro regime, the policy reaction function, the risk premia, and the winners and losers — and therefore capital allocation, risk management, and portfolio construction. 

You can now read the full whitepaper at the link below