Markets are largely unaware of global geopolitical risks, but growing tension may test the resilience of the stock market at the beginning of the new year. Anne Walsh, chief investment officer at Guggenheim Partners, said on Wednesday: “Geopolitical news often only affects the market for a very short time... they are digested by the market, and then the market refocuses on factors that drive prices more, such as profit, profit margins, valuation, and other metrics.” She added, “The end result was a return to the 'buy on diff' mentality, and these very limited opportunities became a time to realign the portfolio.” Walsh said, “Diversifying the allocation and maintaining a state of preparation is arguably the best 'insurance' to protect the investment portfolio and seize opportunities.” She further pointed out that with the normalization of valuations and the Federal Reserve expected to cut interest rates this year, stock market fundamentals are still “quite good.” Still, like many other investors, Walsh remains wary of headline risks facing the market. Investors are awaiting the Supreme Court's opinion this week on the legality of Trump's imposition of tariffs, which Walsh said could trigger some potential market fluctuations.

Markets are largely unaware of global geopolitical risks, but growing tension may test the resilience of the stock market at the beginning of the new year. Anne Walsh, chief investment officer at Guggenheim Partners, said on Wednesday: “Geopolitical news often only affects the market for a very short time... they are digested by the market, and then the market refocuses on factors that drive prices more, such as profit, profit margins, valuation, and other metrics.” She added, “The end result was a return to the 'buy on diff' mentality, and these very limited opportunities became a time to realign the portfolio.” Walsh said, “Diversifying the allocation and maintaining a state of preparation is arguably the best 'insurance' to protect the investment portfolio and seize opportunities.” She further pointed out that with the normalization of valuations and the Federal Reserve expected to cut interest rates this year, stock market fundamentals are still “quite good.” Still, like many other investors, Walsh remains wary of headline risks facing the market. Investors are awaiting the Supreme Court's opinion this week on the legality of Trump's imposition of tariffs, which Walsh said could trigger some potential market fluctuations.