Global capital markets were stirred on Tuesday afternoon following the assessment that North Korea has produced a miniaturized nuclear warhead. This resulted in an escalation of tensions and rhetoric over the potential outbreak of a military and nuclear conflict between North Korea and the United States. The latest verbal exchange late Tuesday afternoon sent shockwaves through financial markets, as stocks, bonds, and precious metals all swiftly reacted to the headlines. All of this raises the important question – what risks does the potential outbreak of a conflict between North Korea and the United States present for investors?
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