Geopolitical events have long been a significant factor influencing financial markets around the world. From trade wars to political unrest, these events can create ripples that lead to both short-term volatility and long-term shifts in global stock prices. For Singaporean investors, understanding how these events affect the market is essential for making informed investment decisions.
Understanding Geopolitical Events
Geopolitical events refer to situations or developments in the political and economic spheres that can affect the stability and functioning of nations and regions. These events often have a far-reaching impact on the global economy and financial markets. They include conflicts such as wars, civil unrest, trade wars, political elections, and economic sanctions, as well as diplomatic decisions that affect international relations.
Some of the key types of geopolitical events that investors need to watch include:
- Wars and Conflicts: Armed conflicts, such as the ongoing Russia-Ukraine war, often cause significant market fluctuations