UBS: A century of data proves that economic fundamentals are the core driving force of the market.

Analysts at UBS Group pointed out in their report that data going back to 1900 shows that for financial markets, economic risks have been proven to be more significant than geopolitical risks. They stated that in most cases, investors who can "see through" the noise of geopolitics tend to perform better. The analysts said, "Through a simple regression analysis of future global stock returns and geopolitical threat indices, we found no correlation between the two regardless of the time frame being one month or one year." However, geopolitical risks are evidently crucial when "extremely significant economic impact events" occur, the analysts cited examples such as World War I, World War II, and the oil crisis of 1973-1974. But they pointed out that such events are "relatively rare," and historically, economic risks have always been more important for investors.