The question would be how do investors position themselves against these risks? Looking more closely at equities markets, in particular in the United States, there could be a legitimate concern that the current optimism is bordering on irrational exuberance shutting out evident political risk.
It is of course not difficult to cite plausible reasons why equities markets should be buoyant: earnings growth, good exposure to emerging markets, low bond market yields and the prospects of tax reform, among others.