Charles Stanley launches Political Stability index

High correlation between political risk and volatile markets

Charles Stanley has unveiled a Political Stability index, which will measure a range of political risk factors for a number of major developed stockmarkets.

The firm says academic studies highlight there is a high correlation between political risk and volatile markets. Therefore, political risk has an impact on investors' end returns. Developed by the firm's Investment Committee, the index measures government stability by evaluating the polling share of the two main political parties in each country. How are politics impacting corporate credit markets? The index assigns a higher political instability score in countries where the main political parties are unable to form governments and are forced to negotiate coalitions. When the p...