Our CEO Discusses the Top 10 Geopolitical Risks to the Global Economy in 2022
January 20, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Darrin Cohen, and I am the CEO of Wealth E&P. Let's take a look at the markets for last week.
The indices were pretty volatile; we saw a movement to the downside of 1.5% to 2% intraday throughout the week. However, most of the days in the week as a whole ended up fairly neutral, all things considered. The S&P 500 and the NASDAQ were down 0.3%, and the DOW is down 0.9% for the week.
You've seen these City National Rochdale charts we've shown before with 20 economic indicators. You see lots of green, which is phenomenal and great news. However, you can see Geopolitical Risk is probably one of the things that stands out as a concern. While it's in the yellow, it keeps getting closer and closer to the red.
So, today what I'd like to do is take a look at the Top 10 Geopolitical Risks for the Global Economy in 2022 so you know what we're aware of and we're watching for.
- China's Zero-COVID Policy (while it's great to try to eliminate COVID completely, it's really hurting their economy in a bad way)
- Physical versus Virtual Reality Space
- U.S Midterm Elections (and the news surrounding it)
- China's Domestic Issues (again, fundamentally affecting their economy)
- U.S. and Russia Relations (as well as the battleground there)
- Iran's Nuclear Advances
- Unsteady Steps Toward Green Energy (it's not going smoothly, even though there are improvements)
- Global Power (or a lack of a global powerhouse)
- “Canceled” Corporations (where the public is looking to corporations not only to provide goods and services, but to make choices that align with their personal political views and what they would like to see out there)
- Turkey's Economic Troubles
These are all things that we're watching, so there is no need to worry about it. However, our All-Weather score is still 31 out of 40. We’re still very optimistic, although it's getting close to the edge where we might de-risk just a little bit.
If you have any other questions on this or anything else, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our Market Minute next week!
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