Geopolitical Risk: Is the Bark Worse than the Bite?

From China's economic woes and tensions with Taiwan, to escalating fighting in the Middle East and the disruption of shipping routes, to central banks keeping interest rates high, there is no shortage of anxiety about geopolitical risks. On today's episode, host Mike Townsend is joined by Jeffrey Kleintop, Schwab's chief global investment strategist, to look beyond the worrisome headlines to see how economies around the globe are doing and what's driving their markets. Jeff shares his perspectives on China's slowdown, the implications of Taiwan's recent election on U.S.-China relations, and the ongoing conflict in the Middle East, including how attacks on container ships in the Red Sea are impacting the global supply chain. 

He also discusses the messages being sent by central banks around the world, why Japan may offer investors an alternative to areas of geopolitical risks, and why investors need to keep an eye on international opportunities despite the headlines.

Mike also looks at a rare bipartisan tax bill that has cleared the House, the politics surrounding the Senate's border security package, and the Federal Reserve's hints about when it may pivot to cutting interest rates.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.

If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts

Important Disclosures

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

Investing involves risk, including loss of principal.

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. 

​Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.

​This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

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