Q: Why do geopolitical events impact the financial markets?

“Anything that makes investors uncertain about the future is likely to affect the markets, and global stability has a big impact on business and consumer confidence. But while events like this one do tend to make things more volatile in the short term, global markets have historically been driven up by things like the general business cycle and earnings in the long term. That’s why we typically recommend keeping calm and investing on, rather than withdrawing money from your accounts or pausing your deposits, even during periods of volatility.”

— Ankur Patel (he/him), Ellevest Senior Portfolio Manager