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Asset allocation implications in today’s chaotic world
Geopolitical risks spiked again recently (Chart 1). Ukraine's cross-border attack in early August, followed by Russia's largest air assault since the war began, has escalated the conflict. Meanwhile, the assassination of a Hamas political leader and subsequent retaliatory actions from Iran and Hezbollah have sharply increased geopolitical tensions in the Middle East. And most recently, waves of explosions in Lebanon and Israel’s declaration of “a new phase of war” have raised fresh geopolitical concerns in the region. The GPR Index indicates increasingly frequent periods when geopolitical risk is elevated – ... (full story)