The past month has offered investors a useful reminder that financial markets rarely move in lockstep with the headlines.
The geopolitical backdrop has become more difficult, trade policy remains unsettled, energy markets are once again being influenced by events in the Middle East, and several major economies are operating with slower growth and less room for policy error than they enjoyed a few years ago.
None of that should be dismissed.
At the same time, it would be equally mistaken to look at the collection of risks in front of us and conclude that the global investment environment has become fundamentally unworkable.
The better way to think about the current environment is that the world has become more complicated, more regional, and more dependent on policy choices than it was during the long period of globalization that dominated the 1990s and early 2000s.
