Economic Risks Outweigh Geopolitical Concerns in Market Impact, UBS Analysts Say

UBS Group analysts have highlighted that economic risks have historically had a more significant impact on financial markets than geopolitical risks. According to NS3.AI, the analysts suggest that investors who focus beyond geopolitical noise tend to achieve better performance. A regression analysis of future global equity returns against a geopolitical threat index reveals that economic factors are more influential than geopolitical risks in driving market outcomes.