Markets at Record Highs Despite Mounting Geopolitical, Economic Risks
• Stock markets have failed to anticipate major historical events like World War I and the 2008 financial crisis despite warning signs • Current geopolitical risks from Russia-Ukraine war, Iran-Israel tensions, China-Taiwan relations are high • Economic risks like bursting housing bubbles in US, China and Europe and potential recession in Europe threaten markets • Effects of interest rate hikes by Federal Reserve and other central banks are yet to be fully felt • Despite these mounting risks, US stock markets are reaching record highs, similar to past eras before major crises