Geopolitical Risks Abound

The world is getting more dangerous. That doesn't seem to be having any impact on the US stock market. The S&P 500 is less than 1% below its July 16 record high, while the equal-weighted version of the index is at a record high (chart).

The biggest risk to the bull market in stocks is a recession, according to most strategists. We don't share that concern, especially now that the Fed is focusing on keeping the unemployment rate down. Instead, we continue to monitor geopolitical developments as perhaps the biggest risk to the bull market: