By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 24 2017
Key points
- Tensions with North Korea have clearly increased causing volatility in share markets.
- The risk of war has grown but a diplomatic solution remains most likely although there could still be more volatility before this is finally achieved.
- Historically, shares have been adversely affected initially on the uncertainty of wars (or threatened wars) with a potential significant economic impact, but have tended to rally well before the conflict is over.