Geopolitical Risk Needs Consideration

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    Investors are being urged to review their portfolios more regularly and to include a small exposure into real assets such as commodities and precious metals as a precaution against rising geopolitical risk. Tom Elliott, international investment strategist at deVere Group, believes many investors are becoming complacent of the threats to the markets posed by political turmoil. “There seems to be a growing disconnect between investment and global political tension. Russia is at war with the Ukraine, the Middle East is engulfed in a Sunni/Shia conflict on multiple fronts, and China is testing the resolve of its neighbours to defend their maritime borders, amongst other situations. All are challenges to the West to defend its interests and on all scores the West is hesitant to intervene.” Yet real assets, such as commodities, particularly oil and gold, have barely responded to the rise in geopolitical risk this year, he says.