The spread of a disruptive anti-establishment political tide in Europe. Markets' narrower focus: Unlike political scientists, markets focus on what disrupts a handful of specified risk factors, and do so with a considerably shorter time horizon. Backstop: The markets' willingness and ability to look beyond immediate threats have been bolstered by the perception of considerable funding assurances from two sources. Go back a little further and markets have shown a striking ability to shrug off political and geopolitical instability. Political scientists should take these factors more into account when seeking to translate their political/geopolitical insights into market calls.

Source: Economic Times January 23, 2018 08:15 UTC