Thus the Financial Times today. “Central bank policies have banished concerns about possible ‘contagion’,” explains the newspaper. Indeed, the fighting in Ukraine and Gaza has had little effect on the stockmarkets. Once upon a time, such events would have had investors worried about possible “contagion,” but it is different now. As the article explains, financial market volatility is mostly driven by the credit cycle. “When monetary conditions are loose—meaning credit is both available and cheap—market volatility tends to be lower,” or so the argument goes. Complacency is still the biggest risk, the article concludes. Well put. But the ultimate question is where the fighting in Ukraine and Gaza will lead. Will it spread or will it be contained? This is a question of possible “contagion” once again, but central banks will not be able to do a thing about it in the case of fighting. So far, it appears that it will not spread either in Ukraine or Gaza, and that is the real reason why geopolitics does not trouble investors at this point in time. Pace investors, but you are only human.