Geopolitics: Near-Term Stock Market Risk Building

Head Of Research • Jun 4, 2021 at 4:54 AM EDT

Russia just told the US to be ready for some "discomfort." China just told the US to watch out for a nuclear buildup. Multiple zones of risk are percolating. I think this needs to be a front burner focus for traders and investors.

Video Length: 00:12:45

Russia just warned the US things could get "uncomfortable." China's government sponsored media just warned the US to watch out for a nuclear buildup (here and here).

Taiwan, Ukraine, Iran and elsewhere, the geopolitical news crescendo is building. The Fed has numbed the market. But if something were to break between the US and China, many companies, specifically tech companies that depend on both supply and demand from China and Taiwan, would get hurt. If something were to happen with Russia it could further disrupt already fragile supply, sparking more inflation.

These are risks that have actually been exacerbated further in the last week or so. I think we all need to put this on our front burner to monitor market risk.

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