Heard on the Street Recap: Sentiment Check

Ladies and gentlemen, buckle up! We're diving headfirst into the frenetic world of geopolitics and its impact on your hard-earned investments. With elections looming in over 50 countries and wars raging in Europe and the Middle East, it's no surprise that geopolitical concerns are at the forefront of every investor's mind. But how do these events really affect your portfolio? Let's break it down!

First things first: GEOPOLITICAL EVENTS AND MARKET RETURNS. Historically, geopolitical events have had a fleeting impact on large-cap equity returns. Sure, there might be a short-term dip, but over the long haul, the market tends to bounce back. Take a look at this data:



See that? Three, six, and twelve months after a geopolitical event, the returns are identical to periods without such events. So, don't panic and sell your stocks just because there's a crisis halfway around the world. Stay calm and keep your eyes on the long-term prize.

But here's the kicker: NOT ALL EVENTS ARE CREATED EQUAL. Some geopolitical events can have lasting impacts. Remember the 1973 oil shock? That thing decimated equity returns for a year. So, you need to be smart about this. Don't just assume every event will blow over. Do your homework and understand the specifics of each situation.

Now, let's talk LOCAL IMPACTS. While large-cap equities might shrug off geopolitical events, local markets can get hammered. Take small-cap German stocks, for example. They've been through the wringer thanks to regional instability. And don't even get me started on Hong Kong versus Singapore real estate values – it's a rollercoaster ride!

And then there's GOLD, the ultimate safe-haven asset. In 2025, gold prices hit a record high of $2,736.69 per ounce. That's a 14.7% increase from the previous year! If you're looking to hedge against geopolitical risk, gold is your friend. But don't forget about silver – it's having a moment too, with a 21.7% climb in the previous year.

But wait, there's more! Let's talk about the BRICS+ EFFECT. The BRICS economies – Brazil, Russia, India, China, and South Africa – have expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates. This bloc is flexing its economic and political muscles, and it's got the potential to shake up the global reserve currency status of the U.S. dollar. Keep an eye on this space, folks – it's going to get interesting.

So, what's the takeaway? DON'T PANIC, BUT DON'T IGNORE. Stay informed, diversify your portfolio, and keep a long-term perspective. Geopolitical events are a fact of life, but with the right strategy, you can navigate these choppy waters and come out on top.

Remember, the market hates uncertainty, but it loves a good opportunity. So, stay alert, stay informed, and most importantly, stay in the game. Because in the world of investing, the only constant is change – and those who adapt will thrive.

Boo-yah! Let's make some money!