Global events reshape economies and markets, creating uncertainty for investors. But by adopting strategies to protect portfolios, staying informed and seeking expert guidance, it is possible to minimise losses and unlock opportunities during turbulent times.
Pandemics, climate change and natural disasters are some of the most significant global events. Globalisation enables these crises to spread faster than ever before, but it also means they affect all places unequally.
For example, the influenza pandemic spread more quickly than previous plagues because people were more connected to each other than before, and could easily share information. As a result, Europeans who were dying of the flu hardly knew of, or cared about, deaths in India, for instance. In the same way, a volcanic eruption in Iceland in 1783 led to atmospheric haze and dry sulphurous fog across Europe and Asia, but was less disruptive in North America.
The Olympic games and football world cup are two other major global events that generate economic benefits for their host countries. These benefits are not limited to national GDP, but extend to other indicators such as the creation of new industries and foreign income whose effects last beyond the event’s duration.
However, political issues can disrupt the organisation of these events. The Beijing Olympics were held during the Cold War, and in the lead up to the Games, there was tension between Russia and many of the other nations involved. This contributed to the slow start of the games and limited the impact they had.