- North Korea's power elite witnessed the downfall of Libya's Muammar Qadaffi and Iraq's Saddam Hussein and do not want to suffer a similar fate. The regime believes a nuclear deterrent is its best option.
- Neither the U.S. nor its Cold War adversaries, Russia and China, want a nuclear-armed North Korea.
- What does Admiral Greenert look for that could signal a shift from mere rhetoric to military action by North Korea? A break in the routine, a change in mood and a movement of forces.
- Interestingly, people monitor the Pentagon parking lot and pizza deliveries late into the night as a sign of heightened military preparedness, i.e., people working overtime, according to the Admiral.
- UBS believes one of the best ways to invest in the current climate of geopolitical risk is a well-diversified portfolio that includes both cyclicals and defensive stocks.
During our special call, Admiral Jonathan W. Greenert, Former Chief of Naval Operations, and Mike Ryan, Chief Investment Officer Americas, UBS Wealth Management discussed the current situation in North Korea. Admiral Greenert reviewed North Korea's drive to procure nuclear weapons going back to Kim Il-sung, the grandfather of the current leader of the country, Kim Jong-un. The primary function of this regime is survival, according to the Admiral.
Listen to the replay of the call.
Is your portfolio prepared for global risks? Connect with your UBS Financial Advisor or find one.