Of all the possible fears out there, one has increased the most for investors in the past month – geopolitical risk.
According to Bank of America Merrill Lynch’s monthly fund survey, a geopolitical crisis is the biggest tail risk for 18% of investors, up from 13% last month.
The survey was carried out between November 6 and 13, which is before the Paris attacks on the night of November 14, and covered 201 investors managing a total of $576 billion.
A Chinese recession and emerging market debt crisis still win out as bigger fears overall, with 32% and 23% respectively, but with Russia’s military involvement in Syria, a migrant crisis and the rise of ISIS, it’s not hard to see why investors are concerned.