Can Your Portfolio Tolerate Geopolitical Risk?

As the global community addresses Russia’s invasion in Ukraine, it is crucial to keep a few things in mind.

Geopolitical risk is a part of investing in global markets. Military or economic conflicts can affect stock and bond markets in many ways.

These events are widely followed by investors, and current market prices quickly incorporate expectations about the effects of these events on economies and companies.

Research by Vanguard reveals this to be true; geopolitical events and corresponding market selloffs are usually temporary in nature.

With the heightened uncertainty of world events, broad diversification remains an essential component of one’s long-term financial planning. Your allocation between stocks and bonds should reflect your financial and emotional ability to absorb the inevitable bear markets that occur over time.  

Is it time to review your portfolio allocation? Schedule a 30-minute strategy session with me to create an investment and financial plan that tolerates market volatility.