|Russ Koesterich, CFA – BlackRock Global Allocation Team
Why Investors Are Ignoring Political Dysfunction – For Now
Summary: Koesterich points out that historically, the relationship between government policy uncertainty and market volatility is weak. Policy uncertainty is more likely to influence market volatility when financial conditions are tightening, which is not happening right now. Tight high-yield spreads, the advance of the stock market, and a weaker US dollar have led to easier financial conditions and less financial stress.