Not all geopolitical events have significance for investors. To determine which events will or will not have an investment impact, investors need to understand how key economic variables will be affected.
Chapter 1 of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments briefly discusses how geopolitics can affect the economy and investments. As the reader will see, some geopolitical events have only a fleeting, short-term impact (or none at all), whereas others have a long-lasting impact that might be felt for years—if not decades. The impact depends on the economic variables that are affected by the geopolitical event.