A new war breaking out in Iran is highlighting the effects of a new era of geopolitics as a recurring macro driver for institutional investors, said Monica Defend, head of the Amundi Investment Institute, in an emailed statement to Benefits Canada.

“We are moving further into a ‘controlled disorder’ environment, where shocks generate rotation and dispersion rather than a uniform market direction.”

War broke out last Saturday with the killing of Iranian Supreme Leader Ayatollah Ali Khamenei in a joint strike by Israel and the U.S. The continued attacks have resulted in casualties on both sides as Iran struck Israel and other Arab states looking for U.S. military targets, according to media reports.

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