Geopolitics and Investing

Free CAIA Level II lesson in Universal Investment Considerations. 21 min read, ~3,121 words.

Geopolitical beta is the systematic return impact of the geopolitical regime; geopolitical alpha is skill in forecasting geopolitical events better than the market. Forecast from constraints, not preferences. What a leader wants is a weak signal; what political, economic, and market reality forces is a strong one. The three geopolitical...

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