Seeking Alpha

Geopolitical Risk: Who Cares?

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Includes: BXUB, BXUC, DMRL, EPS, IVV, PPLC, RSP, RVRS, RYARX, SDS, SFLA, SH, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SSO, UPRO, USMC, VFINX, VOO
by: Constantin Gurdgiev

Geo-political risks, geo-shmalitical risks... who cares... not the markets...

None of the geopolitical risks registered on S&P 500 companies reporting radar, according to FactSet in 1Q 2018. This is not very surprising as majority of earnings for 1Q accumulated before any spikes in these, and as "Tariffs" category probably absorbed the 'China' effect. Notably, however, earnings were impacted adversely by trade conflict and cyber risks (total of 3/25 companies impacted).