U.S. stocks show little reaction to Trump’s extraordinary Venezuela action. Why investors see a bull case

U.S. stocks show little reaction to Trump’s extraordinary Venezuela action. Why investors see a bull case


Key Points
  • Historically speaking, geopolitical shocks have had little lasting impact on the stock market.
  • A review of the last 11 major geopolitical events showed that the S&P 500 on average was just 0.3% lower one week after the event, and 7.7% higher 12 months later, according to UBS.
  • Investors do not expect the attack to escalate any further, in part because of Trump’s prior criticisms of conflicts drawn out in Iran and Afghanistan.



Source

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