Political risk is a type of risk that can be materially affected by political decisions, events, or conditions. Investors should recognize that this type of risk differs from more traditional economic risks.
Currently, company specific investment analysis is being overshadowed by uncertainty surrounding the impact of the health emergency and government efforts to protect citizens and support financially stressed essential businesses. Investors and their advisor(s) are faced with the challenge of seeking to determine how a general economic recovery, which we expect, will affect individual investment opportunities.
All comments and suggestions are welcome.
Walter J Kirchberger, CFA