When investors think of the investment landscape, they often focus solely on the S&P 500 and the United States stock market, failing to understand or be aware that the global markets are interconnected more than ever today, in ways that if one asset class moves in Europe or Asia, it can immediately affect markets in other regions, potentially posing a risk for those who are not aware.
Recently, investors could see this effect at play as South Korea declared martial law to start in December 2024. American investors woke up to the news, sending oil prices from $68 a barrel to slightly above $70 a barrel. Of course, this price action in the energy sector will have many other implications in other sectors and stocks, so paying attention to other markets is of the utmost importance.
