Social unrest is exploding across many parts of the world. In the past week alone we have witnessed scenes of violence erupt in several emerging market countries in different parts of the world. While the unfolding events are important to monitor closely from a geopolitical and humanitarian perspective, it is also important to consider the following – at what point might these events start to have an impact on investment markets including stocks? For if the financial stability of any of these at risk countries starts to crumble, the threat of a global financial contagion could soon follow as the fallout effects have the potential to be the catalyst for the next major market crisis. In monitoring the situation, two key market indicators are readily available to keep investors informed as to whether further action is needed.
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