Geopolitically Resistant

An overwhelming majority of headlines, even those of the geopolitical variety, have indiscernible market effects. Below are some of the most extreme geopolitical surprises from the past century.

Here is the average S&P 500 price return following these events. Very typical.

Gold prices, which would normally benefit from high military spend and economic headwinds, also experienced typical results.

The stock market surprises me all the time. When it does, I’m almost always surprised by its apathy. The world’s economy and its markets are incredibly resilient.