Podcast
Questions and Answers
Which asset prices are commonly affected by high-velocity geopolitical risks?
Which asset prices are commonly affected by high-velocity geopolitical risks?
- Stocks and bonds (correct)
- Cryptocurrencies and venture capital
- Commodities and foreign exchange
- Real estate and precious metals
What can sustained disruption due to low-velocity geopolitical risks result in?
What can sustained disruption due to low-velocity geopolitical risks result in?
- Higher interest rates
- Decreased investor inputs
- Smaller revenues and higher costs (correct)
- Improved risk asset valuations
What is a basic rule of thumb for distinguishing signal from noise in geopolitical risk?
What is a basic rule of thumb for distinguishing signal from noise in geopolitical risk?
- The distinction between politics and policy (correct)
- The distinction between domestic and international risks
- The distinction between short-term and long-term risks
- The distinction between economic and social impacts
What can high inflation and deteriorating employment potentially signal?
What can high inflation and deteriorating employment potentially signal?
What can prompt a change in exchange rate policy for a country?
What can prompt a change in exchange rate policy for a country?
What can serve as meaningful signposts for geopolitical risk?
What can serve as meaningful signposts for geopolitical risk?
What can be used to help identify potential red flags early for country-level economic conditions?
What can be used to help identify potential red flags early for country-level economic conditions?
What can be a key reason why asset prices in emerging and frontier markets are typically maintained at a discount to those in developed countries?
What can be a key reason why asset prices in emerging and frontier markets are typically maintained at a discount to those in developed countries?
What can geopolitical risk analysis be translated into for the portfolio management process?
What can geopolitical risk analysis be translated into for the portfolio management process?
What can determine the priority of geopolitical risks for an investor?
What can determine the priority of geopolitical risks for an investor?
Which factor can affect an asset allocator's positioning in certain countries or regions?
Which factor can affect an asset allocator's positioning in certain countries or regions?
What may be considered more reliable investments based on their historical use of a multilateral approach?
What may be considered more reliable investments based on their historical use of a multilateral approach?
Why may countries experiencing consistent military threat have lower economic and investment growth potential?
Why may countries experiencing consistent military threat have lower economic and investment growth potential?
In multifactor models, how can geopolitical risk be considered when assessing global car manufacturers?
In multifactor models, how can geopolitical risk be considered when assessing global car manufacturers?
What may be the impact of geopolitical risks on the confidence intervals around factors related to momentum, valuation, market sentiment, or the economic cycle?
What may be the impact of geopolitical risks on the confidence intervals around factors related to momentum, valuation, market sentiment, or the economic cycle?
What does the importance of geopolitical risk to the investment process depend on?
What does the importance of geopolitical risk to the investment process depend on?
For an investor with low risk tolerance, what may be an appropriate approach to reducing exposure to geopolitical risk?
For an investor with low risk tolerance, what may be an appropriate approach to reducing exposure to geopolitical risk?
For an investor with a long time horizon, what may a geopolitical event like an exogenous shock be considered as?
For an investor with a long time horizon, what may a geopolitical event like an exogenous shock be considered as?
For an investor nearing retirement, what may be the impact of a geopolitical event like an exogenous shock on their terminal portfolio value?
For an investor nearing retirement, what may be the impact of a geopolitical event like an exogenous shock on their terminal portfolio value?
What can changes in the style and momentum of international cooperation have on capital markets?
What can changes in the style and momentum of international cooperation have on capital markets?
Which of the following best describes a signpost in the context of risk management?
Which of the following best describes a signpost in the context of risk management?
When signposts are flashing amber, what does it indicate?
When signposts are flashing amber, what does it indicate?
What is the purpose of identifying signposts in risk management?
What is the purpose of identifying signposts in risk management?
In the context of risk management, what does it mean when signposts flash green?
In the context of risk management, what does it mean when signposts flash green?
What is one important process in building a portfolio's resilience to unexpected change?
What is one important process in building a portfolio's resilience to unexpected change?
When might an action plan be necessary in risk management?
When might an action plan be necessary in risk management?
What is the role of good signposts in risk management?
What is the role of good signposts in risk management?
In the context of risk management, what does it mean when signposts flash red?
In the context of risk management, what does it mean when signposts flash red?
What is one example of a signpost mentioned in the text?
What is one example of a signpost mentioned in the text?
Before 2014, what did signposts for geopolitical risk in the United Kingdom flash?
Before 2014, what did signposts for geopolitical risk in the United Kingdom flash?
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