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Although investors expect wars and international conflicts to have a significant impact on investments, many conflicts have no material influence that matters for investors. Learning how to differentiate between the two types of conflict is key.


Chapter 2: Armed Conflict and Terrorist Attacks

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Overview

Chapter 2 of Geo-economics: The Interplay between Geopolitics, Economics, and Investments examines the types of events that probably first come to mind when we talk about geopolitics: wars and international conflict. Unfortunately, in many cases, wars do not really matter all that much for investors, but in some circumstances, wars can and do have a material influence on financial markets. This chapter will enable readers to differentiate between the two types and provides examples of how big the impact of international conflict has been on markets historically. Because the face of international conflict is also changing, this chapter covers not only traditional wars between nation-states but also the impact of international terrorism on the economy and financial markets.

About the Author

Joachim Klement
Joachim Klement CFP, CFA

Joachim Klement is a strategist at Liberum. He has more than 20 years of experience in the financial markets and has spent most of his career working with wealthy individuals and family offices, providing advice on investments and helping manage portfolios. Mr. Klement studied mathematics and physics at the Swiss Federal Institute of Technology in Zurich (ETH Zurich) and earned a master’s degree in mathematics. He later studied business administration at the University of Zurich and the University of Hagen and earned a master’s degree in economics and finance.