Pricing North Korean Risk Into Market Difficult

With all the bluster coming from North Korea – nuclear missile tests, talk of protracted war with a nuclear threat hanging overhead – a Bank of America Merrill Lynch piece thinks the worst potential outcome, while chilling and difficult to price into markets, nonetheless remains a “tail risk.” The more practical threat is conventional warfare that could escalate quickly is civilian casualties are involved. Indeed, the entire US senate is now meeting with Rex tillerson and President Trump. Reuters notes, the meeting procedure is usual:   All 100 senators have been asked to the White House for the briefing by…