The equity market climbs a wall of worry, and there’s a long list of things to worry about on the political front. Those worries could see stock prices struggle to gain further altitude in the next couple of quarters. But in each case, the most likely outcome isn’t anywhere near the worst case scenarios.
War risks in the Korean peninsula? Yes, the US fleet is steaming to its coast, but that’s usually a way of seeming to do something while doing nothing. With no safe way to attack North Korea without putting Seoul at serious risk, the only real route to relieving tensions lies in getting China to threaten economic consequences that even Kim Jung-un can’t ignore.