What's the current score in the game between Mainstream vs Populist politics? The Dutch elections have certainly played a part in reducing any deficit as we approach half time. How have investors reacted to these events so far? Some fund managers have made shifts away from Europe due to political risk.
An observation I would make is that market participants are starting to take political risk seriously. There will be winners and losers as events play out on the political stage. It pays to have diversified investment strategy in place to offset the implications of a breakup in Europe. Elections in France and Germany all present a risk for the Euro. Events in U.K. and the election of Trump have not helped calm fears for the Euro area. There are many attractive companies in Europe which are world leaders in their sector. In a multi-regional, multi asset class approach the short term uncertainty attached to one region can be offset by gains elsewhere.