{"id":650156,"date":"2017-03-17T08:37:38","date_gmt":"2017-03-17T08:37:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/17\/the-cost-of-political-uncertainty\/"},"modified":"2017-03-17T08:37:38","modified_gmt":"2017-03-17T08:37:38","slug":"the-cost-of-political-uncertainty","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/17\/the-cost-of-political-uncertainty\/","title":{"rendered":"The cost of political uncertainty"},"content":{"rendered":"

Policy uncertainty costs real money. <\/strong>That\u2019s the conclusion of a Chicago Booth paper<\/a> that tries to quantify the cost to markets of political risk. In a study of options prices from 20 countries, researchers found out that prices of options spanning disruptive political events are on average 5.1% higher than options that don\u2019t overlap with a period of political risk<\/strong>. In weaker economies, where policy changes are more relevant after a political event, this risk margin could get to as high as 8%. How much does it cost economies? They estimated that insuring assets equivalent the S&P500\u2019s total market value in 2014 against one month of policy uncertainty would cost as much as two Hubble space telescopes \u2014 or clean water for the entire planet plus two space ships. (Watch<\/strong><\/a>, runtime: 1:34)<\/p>\n","protected":false},"excerpt":{"rendered":"

Policy uncertainty costs real money. That\u2019s the conclusion of a Chicago Booth paper that tries to quantify the cost to markets of political risk. In a study of options prices from 20 countries, researchers found out that prices of options spanning disruptive political events are on average 5.1% higher than options that don\u2019t overlap with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12012],"tags":[72,2380,12011,12010],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-650156","post","type-post","status-publish","format-standard","hentry","category-speed-round-the-weekend-edition","tag-enterpriseam","tag-speed-round","tag-speed-round-the-weekend-edition","tag-the-weekend-edition","wpautop","entry"],"acf":{"mongo_id":"baebbe48-260b-4cc0-8031-3ac818fd6bf4","order":"0","is_powered_by":true,"section_story_id":"58b48825-146b-47bc-b694-de65c5baaf05","story_type":"1","photo_url":"","photo_position":"above","related_issue":[650141],"teaser":"","voice_url":""},"yoast_head":"\nThe cost of political uncertainty - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/03\/17\/the-cost-of-political-uncertainty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The cost of political uncertainty\" \/>\n<meta property=\"og:description\" content=\"Policy uncertainty costs real money. That\u2019s the conclusion of a Chicago Booth paper that tries to quantify the cost to markets of political risk. 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