Geopolitical risk tends to have far less of an impact on stock markets than you may otherwise think. Quite often military invasions turn out to be dips that are bought. With the UK’s FTSE 100 offering better price to earnings ratios than US equities is the UK FTSE 100 worth buying now ahead of a strong seasonal pattern in April?
The FTSE100 has a period of strength from March 21 through to May 02 with gains in 10 years out of the last 15 years. The average return has been +3.11% and the annualised return was +30.36%.
Major Trade Risks: The main risk here is any geopolitical risk from western imposed sanctions on Russia, or open conflict between Ukraine and Russia. That could result in another leg lower in equities.