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5. Politics: Greater Uncertainties

Even after the French Presidential election, political uncertainties and geopolitical risks remain high. History suggests that geopolitical events can have a longer lasting negative impact on financial markets if the event directly implicates the US in a significant manner and leads to a re-assessment of the role of the US in the world. Market volatility can also spike if oil prices rise rapidly or destabilising geopolitical events take place against a backdrop of already weak global growth and there are no offsetting policy actions.






Key Takeaways

  • While market volatility has stayed at historically low levels, there are geopolitical events that can trigger higher volatility.
  • Citi analysts continue to advocate that investors should have diversified portfolios to help them navigate different market situations.


This is one of the 7 articles from Citibank's 2017 Mid Year Outlook Publication "Cautious Optimism Amid Steady growth". Please approach a Citibank relationship manager if you would like a copy. 

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