Markets Are Ignoring Rising War Risks: Patterson

A former Bridgewater strategist and current Council on Foreign Relations senior fellow warns that surging global markets are overlooking escalating geopolitical threats despite record highs. Oil supply disruptions loom as a critical near-term risk, with tensions threatening to destabilize energy markets and trigger economic shocks if conflicts intensify. The AI-driven market rally remains vulnerable, as overoptimistic growth projections could collapse if geopolitical instability disrupts tech supply chains or innovation pipelines. Patterson highlights fragile investor confidence, noting that sudden reality checks—like conflict escalations or faltering growth—could reverse current market euphoria without warning. Her analysis suggests markets are pricing in best-case scenarios while ignoring systemic risks, leaving portfolios exposed to abrupt corrections if tensions spiral.