Have markets become desensitised to geopolitical conflicts?

Have markets become desensitised to geopolitical conflicts?

Political conflicts in Russia and the Middle East show no signs of ending, yet emerging markets have continued on an upward curve. Has investor complacency has set in?

With conflict between­­­ Russia and Ukraine already at an all-time high following the annexation of Crimea by President Vladimir Putin in February, the travesty involving the death of 198 passengers on board Malaysia Airlines flight MH17 last month only heightened tensions. Thought to have been shot down by a surface-to-air-missile close to the Ukraine-Russia border, the tragic downing of the plane is one of several events to have brought the issue of political risk into the frame for fund managers. The volatility of emerging markets has been highlighted over the past 18 months, throu...