Ib Fredslund Madsen, chief strategist at Jyske Bank, wrote that financial markets are ignoring the direct geopolitical uncertainty caused by the US military action to remove Venezuelan President Nicolas Maduro. He said that investors have dealt with many seemingly drastic geopolitical events in recent years, but none have had a lasting impact on the market, and the events in Venezuela are unlikely to be any different. Madsen said that Venezuela has more oil reserves than any other country, but its production is very small due to years of underinvestment, poor management, and the withdrawal of most Western oil companies. He added that interest rates have stabilized and the dollar has strengthened slightly, but investors seem to be “buying a little insurance” as the price of gold and silver both rose.

Ib Fredslund Madsen, chief strategist at Jyske Bank, wrote that financial markets are ignoring the direct geopolitical uncertainty caused by the US military action to remove Venezuelan President Nicolas Maduro. He said that investors have dealt with many seemingly drastic geopolitical events in recent years, but none have had a lasting impact on the market, and the events in Venezuela are unlikely to be any different. Madsen said that Venezuela has more oil reserves than any other country, but its production is very small due to years of underinvestment, poor management, and the withdrawal of most Western oil companies. He added that interest rates have stabilized and the dollar has strengthened slightly, but investors seem to be “buying a little insurance” as the price of gold and silver both rose.