Investors should enjoy the calm before reality sets in

Geopolitical risks have intensified over the past month or so with Brexit, the terrorist attack in Nice, the shooting of police officers in a number of cities in the United States, the tragic shootings in Munich, and the failed military coup in Turkey.

Investors should enjoy the calm before reality sets in

Yet, financial markets remain relatively calm all things considered.

Although political risk induces a degree of fear and loathing into investors, central bank liquidity remains the dominant force and this is what is keeping markets moving upwards.

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