UBS: Century old data proves that economic fundamentals are the core driving force of the market On March 5th, according to a report by JinShi Data, analysts from UBS Group pointed out in their report that data dating back to 1900 shows that economic risks have been proven to be more significant than geopolitical risks for financial markets. They said that in most cases, investors would perform best if they could "see through" the noise of geopolitics. Analysts say, "Through a simple regression analysis of future global stock returns and the Geopolitical Threat Index, we found no correlation between the two, whether viewed from a monthly or yearly perspective." However, geopolitical risks are clearly crucial in the event of "extreme events with significant economic impact," including World War I, World War II, and the 1973-1974 oil crisis. But they pointed out that such events are "relatively rare" and historically, economic risks have always been more important to investors.