Wealth Outlook 2024 - Slow then grow

Geopolitics and elections: assessing risk in 2024 27 Wealth Outlook 2024 | Our outlook FIGURE 2 Geopolitical events have rarely altered the course of the global economy Initial S&P 500 30 days % 90 days % impact (%) Average all events -4.8 -0.8 1.9 Average ex WW2 -4.7 -0.6 2.6 Average ex WW2 -4.1 -0.2 3.5 and oil embargo Source: Haver Analytics, Bloomberg as of November 15, 2023. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, whichwould lower performance. Past performance isnoguaranteeof future results. Real resultsmay vary. When diversification can be most beneficial History shows that 90% of geopolitical events have not changed the direction of the world economy. They have had only short-term impacts on global asset prices ( FIGURE 2 ). The exceptions are World War II, the gravest catastrophe in modern times, and the OPEC Oil Embargo of late 1973. This illustrates that staying invested in diversified portfolios while taking advantage of market dislocations through events that merely cause fear, but don’t deliver catastrophe, may be most beneficial.