UBS: A century of data proves that economic fundamentals are the core driver of the market.

According to ME News, on March 5th (UTC+8), UBS analysts stated in a report that data since 1900 shows that economic risk has proven to be more significant than geopolitical risk for financial markets. They stated that in most cases, investors who can "see through" geopolitical noise perform best. The analysts said, "Through a simple regression analysis of future global stock returns and the geopolitical threat index, we found no correlation between the two, whether viewed from a monthly or yearly perspective." However, geopolitical risk is clearly crucial in the event of "extreme events with significant economic impact," citing examples such as World War I, World War II, and the 1973-1974 oil crisis. But they noted that such events are "relatively rare," and historically, economic risk has always been more important to investors. (Source: ME)