The Egyptian Stock Exchange remains closed to this date despite increased domestic stability. This is disconcerting given the external interest shown in a resurgent and democratic Egypt. Markets should be open and able to price both downside risks and upside potential.
Tag Archive 'Political Risk'
Events in the Middle East are proving exciting to both political and market watchers globally. The rise of democracy is both a fruitful base for economic development but also, potentially, a new a source of uncertainty that must be priced-in accordingly. However, Egypt’s relatively peaceful political transition may just prove to be the right base to build upon, both economically and politically, for the coming century.
The VIX has given us one of its characteristic break-outs last Friday. It will be interesting to see how volatility therefore gets priced back to the underlying S&P500 benchmark over the next few days.