Political risk to favor safe havens - TDS

Even though analysts at TDS do not see an escalation of political risks in 2018, events of the past few years suggest that it should not be ignored.

Key Quotes

“This is particularly true as central banks reduce the degree of accommodation. Political uncertainty can trigger a risk-off episode resulting in demand for safe havens. The most obvious is escalation of tensions with North Korea via another test or missile launch, which can trigger a military response. In addition, political paralysis might create disappointment about the lack of policies to help boost long-term growth.”