Investors rejoiced as the market was bolstered toward the end of 2019 by positive trade developments between the US and China, as well as a potentially clearer path to Brexit following Boris Johnson’s Conservative Party’s victory.
Yet, as we entered 2020, geopolitical tensions heightened after a US-led drone strike killed a top Iranian general and Iran retaliated by attacking Iraqi bases that hold US troops. As a result, oil prices rose, and the stock market corrected.
This heightened level of geopolitical uncertainty combined with the upcoming US elections, ongoing trade developments and monetary policies indicate that we are likely to experience yet another volatile year ahead.