WORLDVIEW: Geo-politics dominate so investors can reboot “developed country” premiums.

Quentin Wray reminds us that geopolitics has made a massive comeback in the First World, shaking some long held assumptions. A perspective which holds some important implications for wealth creation.

Published on:

08 Aug 2017, 5:30 am

Investors afford a substantial premium to certainty. They have always been happy to pay for having a high probability of what is likely to happen in the future. It makes planning easier and enables more confident bets. It's also a reason why companies operating in the developed economies enjoy better ratings than those focused on more volatile emerging markets.

But as Quentin Wray reminds us in today's contribution, geopolitics has made a massive comeback in the First World, shaking some long held assumptions. A perspective which holds some important implications for wealth creation.

Quentin writes: "When I was at university one of my digs-mates lost the whole house's rent on a single card. There were 11 of us in the house at the time and this wasn't an insignificant sum of money. Until the UK's latest general election this had always ranked as the dumbest bet I'd seen first hand.

___STEADY_PAYWALL___

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