Investors have long faced global political and military risks, and wise investors consider both individual opportunities and the broader macro environment. Civilizations have risen and fallen for many reasons, and the industrial age has highlighted the divide between countries fostering innovation and profit and those under authoritarian rule. For the past 75 years, the Middle East has been a frequent source of conflict, with global demand for fossil fuels and growing energy needs from China and India straining relationships with major producers. This helps explain how countries like Russia and Iran have sustained themselves despite sponsoring global terrorism and disruptive policies. While the immediacy of Iran’s nuclear threat remains uncertain, limiting the capabilities of hostile regimes offers long-term benefits. Short-term uncertainty is a modest price to pay for reducing global risk, and patient investors are likely to benefit over time.
