How a geopolitical shock could derail the rally

Geopolitical conflicts could create further headwinds for the markets. While the economy has seemed to weather these headwinds so far, potential “”shocks”” to the market could still occur, according to Brian Jacobsen, Chief Economist at Annex Wealth Management. He joined Yahoo Finance to discuss these ongoing conflicts and how investors can best position their portfolio in case of these shocks.

Jacobsen advises to take a look at energy given the kind of impact these events can have on the oil market: “”When we look at the energy sector, we do think that actually that area is slightly undervalued relative to the cash flow that those companies can generate. So if you haven’t gotten exposure to energy, you might want to take a look there. “” He continues, “”That’s one of the positions that we have taken with our client portfolios, is to overweight energy, because that is one of the bigger risks out there to the broader market.””

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.”

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