Last month I attended a lecture by Ian Bremmer about political risk and financial markets. It was interesting enough to inspire me to read his book.
The Fat Tail: The Power of Political Knowledge for Strategic Investing by Ian Bremmer will be helpful to investors that wish to understand political risk. The book is full of historical references on how political risk has impacted the financial markets. My favorite part was the analysis of governments that nationalize foreign investment and what can be done to minimize that risk.
If you invest in foreign markets, add this book to your reading list. Political interests and financial interests don’t always move in sync and understanding that could help you preserve cash.