Geopolitical tensions are significantly influencing how corporations approach cross-border investments, with many becoming more cautious in their strategies. While some investors may show resilience to isolated conflicts, the broader impact on markets is more pronounced in the assets that move during geopolitical shocks. Key assets like U.S. treasuries (up) and semiconductor stocks (down), tied to vulnerable corporates and governments, are particularly reactive. Sharp fluctuations in these areas can create concerns for corporations holding substantial cash reserves, as they seek to avoid volatility that could affect their valuation. As geopolitical risks continue to evolve, the complexity of managing cross-border investments grows, pushing companies towards more conservative capital allocation strategies
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