The risk of overestimating political risk

Shockwaves around the world have made political analysis a must for investors in Asia. But is the really smart play to look beyond the short-term news flows and stick to fundamentals?

With Donald Trump in the White House, multiple crises in Korea, controversial figures such as Najib Razak and Rodrigo Duterte holding power in key Asian markets and, now, yet another vote in Britain, political analysis is gaining new purpose among Asia's fund managers.

But is the importance of political risk being overstated Is the smarter way to play the huge flow of political news simply to look beyond it and put faith in fundamentals

Some experts believe political risks associated with investing have changed little over the years, and increasing market sensitivity to politics actually says more about the economy than those in power.

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