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The Perfect Way to Play Geopolitical Risk: Just Don’t

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Geopolitical risk has been on the tips of many tongues in financial markets in recent years, but selloffs in equity markets associated with moments of high stress are now notorious for the rapidity with which they reverse.

The U.S. airstrike against Maj. Gen. Qassem Soleimani and the retaliatory Iranian missile attacks on Iraqi bases containing U.S. troops now count among the dozens of short-lived geopolitical market panics after which rallies in risk assets have resumed within days, or even hours.

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