Why The Iran Situation Is A Valuable Lesson

Summary

• There are “short-term shocks” and “long-tailed risks” from geopolitical events.
• Understanding the difference between the two leads to better decisions around allocations and recommendations.
• Iran and Ukraine are fundamentally different.
• The current risks are likely to dissipate and provide an advantageous opportunity.

Abstract Aerial Art

By Samuel Rines

Geopolitical risk comes at you fast. But it also tends to fade quickly. Particularly, when those risks are not existential to the current economic environment. The initial reactions tend to be violent in their own right—from equities