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Waiting to erupt: Geopolitics and real estate investing don’t mix
The crisis in Ukraine and the dispute over a group of small islands in the East China Sea have underscored the potential for geopolitical issues to send shockwaves through the financial markets. But how likely is it that such local tensions could cause serious problems for economies and investment markets worldwide?
Rob Martin, director of research at Legal & General Property, says: “What we are seeing is a re-emergence of ‘traditional’ state-on-state conflict. Clearly, [the pro-Russia issue] is located in the Ukraine, but ultimately what we are talking about is a confrontation between Russia and the West. We are also seeing a resurgence of the issues caused by Iran’s nuclear programme and the West’s efforts to contain it.”
Such tensions raise questions about where the most significant risks are likely to come from. Tom Elliot, international inv