They say that the stock market climbs a wall of worry. Obviously, with US stocks testing record highs, and the VIX still low, not many of us are in fact worried about anything. There are a few issues hanging around that, judging by history, should be set aside, but one other less talked-about worry to chew on.
An open war with North Korea? This one has already come and gone a few times in only the last half year. There was the story about the US fleet steaming towards the peninsula (even though it wasn’t yet). A much more serious 2010 escalation, in which North Korean shelling killed several South Koreans on Yeonpyeong, sparking a return of re, was a far more dangerous step towards brinksmanship. US efforts to stall the North’s nuclear program go back to the Clinton administration. Both sides are talking about “plans”, neither are signalling “actions” soon.