What Makes Politics Tick? Understanding Political Risk In Markets

In the latest edition of Global Horizons, Stephanie Kelly, Political Economist, outlines SLI’s analytical framework for assessing the factors that drive political risk and the potential consequences for investors. By identifying risk factors within two distinct categories, institutional and cyclical, it is possible to identify the key drivers of political risk events and build an investment view that takes these factors into account. The framework is especially useful for examining the key political events of 2017 and considering how likely they are to deliver further shocks to the status quo. Executive summary Following a year of unexpected political events in…