Iran Flashpoint Confronts Investors With Unpriceable 2020 Risks
- Markets struggle to price in unknowns on North Korea and Iran
- Political risks range from trade discord to Hong Kong unrest
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Investors have barely set foot in the new year before getting their first reminder of the risks -- the existential and the more-manageable -- that could derail their plans for 2020.
The U.S. airstrike that killed one of Iran’s most powerful generals raised security alerts around the world, and added to anxieties that could dominate markets this year. Money managers blindsided by the 2016 Brexit vote and U.S. President Donald Trump’s election know the price of ignoring politics. Uncertainties stemming from these events are still unresolved -- trade relationships between the U.K. and European Union, and the U.S. and China still hang in the balance -- and other risks are emerging.