Long periods of political violence are 'very bad' for the markets, analyst warns
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Long periods of political violence in democratic societies have historically been detrimental to markets and risk-taking. Analyst Thierry Wizman cites examples of Italy's Years of Lead and the Troubles in Northern Ireland as periods characterized by reduced investment, brain drains, and reductions in tourism. If political violence continues in the US, foreign investors may be deterred from investing and building businesses. The US economy, being the world's largest, would have broader global implications if it faced a hit due to ongoing political violence. The US economy is also facing stubborn inflation, which could be exacerbated by political violence. The market has long expected that a Trump win in the election would be inflationary, reflected in rising Treasury yields. Bond yields tend to go up during periods of political violence as investors flock to them as relatively safe assets. In the aftermath of the assassination attempt on former President Donald Trump, political leaders have stressed national unity. President Joe Biden addressed the nation twice over the weekend, emphasizing the importance of standing together. Analysts warn that while Monday's stock market rally may indicate optimism, the markets are not in the clear and prolonged political violence can have negative consequences.

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https://fortune.com/2024/07/15/donald-trump-assassination-attempt-political-violence-markets-us-economy-joe-biden-inflation/